Assume a merchandising companys estimated sales for January, February, and March are $109,000, $129,000, and $119,000, respectively. Its cost of goods sold is always 60% of its sales. The company always maintains ending merchandise inventory equal to 20% of next months cost of goods sold. It pays for 20% of its merchandise purchases in the month of the purchase and the remaining 80% in the subsequent month. What are the cash disbursements for merchandise purchases that would appear in the companys cash budget for February?

Garrison 17e Rechecks 2021-11-25

Multiple Choice

$66,480

$69,480

$71,480

$72,480