ALPHA, Inc. sells all of its products on credit. Purchases are 60% of the sales for the following quarter. The firm uses a 365-day year and account averages where applicable in its computations.

Accounts receivable period	37 days
inventory period	51 days
accounts payable period	42 days

Account	quarter 1	Quarter 2	Quarter 3	Quarter 4
Sales	$7000	$6000	$8000	$9000
Wages	$2000	$1500	$2000	$2500
Overhead expenses	$500	$400	$500	$600
Dividents	125	125	125	125
Interest expense	350	150	200	300

a) What is the net cash flow for Quarter 2?

A. -$4

B. $174

C. $289

D. $303

E. $359

b) What is the accounts payable balance at the beginning of Quarter 2?

A. $1,420

B. $1,680

C. $1,920

D. $2,240

E. $2,560

c) What is the amount of purchases in Quarter 2?

A. $3,600

B. $4,000

C. $4,800

D. $5,400

E. $6,000

d)

What is the amount of the total disbursements for Quarter 3?

A. $7,625

B. $7,875

C. $7,945

D. $8,225

E. $8,475