Explain the solution

ABC company has budgeted direct materials purchases of $530,000 in July and $840,000 in August. Past experience indicates that the company pays for 70% of its purchases in the month of purchase and the remaining 30% in the next month. During August, the following items were budgeted: Wages Expense $150,000 Purchase of office equipment 72,000 Selling and Administrative Expenses 48,000 Depreciation Expense 36,000 based on the above information, the budgeted cash disbursements for August are $696,000. Select one: O True False