Resco, a local retail establishment, expects to make inventory purchases as follows for the first quarter of the year: January, $6,000; February, $7,200; and March, $8,600. Prior experience shows that 25% of a given months purchases are paid in the month of purchase, with the balance paid in the following month. No purchase discounts apply.

Required:

What is the total expected cash disbursement for February? For March?

Expected cash disbursement

February ?

March ?