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Assume a merchandising companys estimated sales for January, February, and March...

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Accounting

Assume a merchandising companys estimated sales for January, February, and March are $107,000, $127,000, and $117,000, respectively. Its cost of goods sold is always 60% of its sales. The company always maintains ending merchandise inventory equal to 20% of next months cost of goods sold. It pays for 20% of its merchandise purchases in the month of the purchase and the remaining 80% in the subsequent month. What are the cash disbursements for merchandise purchases that would appear in the companys cash budget for February?
Multiple Choice
$68,280
$65,280
$71,280
$70,280

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