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Adi Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year: September $838,000 October $1,046,000 November $852,000 December

Adi Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year:

September $838,000
October $1,046,000
November $852,000
December $884,000

At Adi, 25% of raw materials purchases are normally paid for in the month of purchase. The remaining 75% is paid for in the month following the purchase. How much cash should Adi expect to pay out for raw material purchases during November?

$571,500

$784,500

$213,000

$997,500

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