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ABC Inc. purchases all of its direct materials on credit. During July 2019, the company purchased $100,000 in materials. During August 2019, it purchased $200,000

ABC Inc. purchases all of its direct materials on credit. During July 2019, the company purchased $100,000 in materials. During August 2019, it purchased $200,000 in materials. The company pays for 30% of its purchases in the month of purchase while the remainder is paid for in the month following the purchase. How much cash did ABC disburse during August 2019 with respect to these purchases?

Select one:

a. $130,000

b. $170,000

c. $30,000

d. $100,000

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