ABC Companys raw materials purchases for June, July, and August are budgeted at $46,000, $36,000, and $61,000, respectively. Based on past experience, ABC expects that 40% of a months raw material purchases will be paid in the month of purchase and 60% in the month following the purchase.

Required: Prepare an analysis of cash disbursements from raw materials purchases for ABC Company for August.

June July August Budgeted raw material purchases August cash payments: Current month's purchases Prior month's purchases Total cash payments