Peabody Company prepared the following purchases budget: Month June July August September October Budgeted Purchases $34,400 $42,300 $40,000 $44,600 $48,300 All purchases are paid for as follows: 60% in the month of purchase, 35% in the following month, and 5% two months after purchase. What are the total cash disbursements in August to account for the purchase of merchandise at Peabody Company? A. $46,590 B. $40,525 C. $24,000 D. $70,020