Brief Exercise 3: Beal, Inc. provided the following information: March Projected merchandise purchases $65,000 April $75,000 May $80,000 Beal pays 40% of merchandise purchases in the month purchased and 60% in the following month. General operating expenses are budgeted to be $20,000 per month of which depreciation is $2,000 of this amount. Beal pays operating expenses in the month incurred. Instructions Calculate Beal's budgeted cash disbursements for May. Brief Exercise 4: Diamond Company is considering investing in new equipment that will cost $1,400,000 with a 10- year useful life. The new equipment is expected to produce annual net income of $90,000 over its useful life. Depreciation expense, using the straight-line rate, is $140,000 per year. Instructions Compute the cash payback period