Assume a merchandising companys estimated sales for January, February, and March are $103,000, $123,000, and $113,000, 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 30% of its merchandise purchases in the month of the purchase and the remaining 70% in the subsequent month.

What are the cash disbursements for merchandise purchases that would appear in the companys cash budget for February?

Multiple Choice

$68,720

$69,720

$66,720

$63,720