Chain Inc. provided the following information:

April May June

Projected merchandise purchases $92,000 $80,000 $66,000

• Chain pays 40% of merchandise purchases in the month purchased and 60% in the following month.
• General operating expenses are budgeted to be $31,000 per month of which depreciation is $3,000 of this amount. Chain pays operating expenses in the month incurred.
• Chain makes loan payments of $4,000 per month of which $450 is interest and the remainder is principal.

Instructions

Calculate budgeted cash disbursements for May.