Foxglove Company, a growing retailer, is preparing its budget for the first half of the year assuming the following for sales in each month: January February March April May June Sales $200,000 $220,000 $242,000 $266,200 $292,800 $332,00 For budget purposes, the following assumptions are used: a. The company's Gross Margin is 20%. b. All merchandise is purchased in the month prior to the month of sale. c. 75% of merchandise purchases are made on credit with the rest paid in cash. d. For credit purchases, 30% is paid in the month of purchase, 50% in the month following, and the remaining 20% in the second month after purchase. e. Half of the Sales are made on Credit with the other 50% in cash each month. f. Collections on credit sales are expected to be 60% in the month of sale and the remainder in the following month. g. Selling and administrative expenses of $15,000 per month include $2,500 of depreciation expense. h. The company incurs interest expense of $1,000 per month which it pays in cash in March and June. i. Foxglove will be declaring a dividend of $10,000 in February and paying to shareholders in March. k. The budgeted balance in Retained Earnings on January 31 is $250,000. Foxglove's budgeted cash disbursements related to merchandise purchases for the month of March would be: