Cummings, a multi$-$million$-$dollar corporation, has been accumulating operating data in order to prepare an annual profit plan. Details regarding Cummings sales for the first six months of the year are as follows:

Estimated Monthly Sales Type of

Monthly Sales

January $$1,200,000$ Cash Sales $25\%$

February $1,300,000$ Credit Sales $75\%$

March $1,500,000$

April $1,250,000$

May $1,440,000$

June $1,600,000$

Collection pattern for credit sales

Month of sales $30\%$

One month following sale $50\%$

Second month following sale $20\%$

Cummings cost of goods sold average $40\%$ of the sales value. Cummings objective is to maintain a target inventory equal to $20\%$ of the next month's sales. Purchases of merchandise for resale are paid for in the month following the sale.

The variable operating expenses $($other than Cost of goods sold$)$ for Cummings are $10\%$ of sales and are paid for in the month following the sale. The annual fixed operating expenses are presented below. All of these are incurred uniformly throughout the year and paid monthly except for insurance and property taxes. Insurance is paid quarterly in January, April, July, and October. Property taxes are paid twice a year in April and October:

Annual Fixed Operating Costs

Advertising $$1,500,000$

Depreciation $840,000$

Insurance $400,000$

Property taxes $480,000$

Salaries $2,400,000$

TB $07-120$ Determine the total cash disbursem...

Determine the total cash disbursements that Cummings Corporation will make for the operating expenses during the month of April.