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Sullivan Company prepared the following information for the next four months: Month January February March April Budgeted Sales (in S) 75,000 78,000 90,000 110,000 A
Sullivan Company prepared the following information for the next four months: Month January February March April Budgeted Sales (in S) 75,000 78,000 90,000 110,000 A Budgeted expenses per month are as follows: Administrative costs: $25,000 Depreciation: $7.000 Insurance: $1.700 Salaries: $32,000 Salaries: $32,000 Salaries, insurance and administrative costs are paid in the month they are incurred. Sales are collected as follows: 40% in the month of sale, 50% in the month after sale, and 10% are uncollectible. Purchases are 40% of sales for a given month and are paid in full the following month. What are the cash disbursements for March? $89,900 $101.700 $94.700 $96.900
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