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Kimball Co . wishes to forecast it cash disbursements relating to inventory for the month of March. Estimated purchases of inventory in January, February, and

Kimball Co. wishes to forecast it cash disbursements relating to inventory for the month of March. Estimated purchases of inventory in January, February, and March are $100,000,120,000, and $150,000, respectively. Kimball typical pays for 40 percent of its inventory purchased in the month of purchase, 50 percent in the month following purchase, and the remaining 10% in the second month following the purchase.
Given this information, forecasted cash paid for inventory in March is:
$130,000
$150,000
$133,000
$120,000
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