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Assume a merchandising companys estimated sales for January, February, and March are $102,000, $122,000, and...

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Accounting

Assume a merchandising companys estimated sales for January, February, and March are $102,000, $122,000, and $112,000, respectively. Its cost of goods sold is always 35% of its sales. The company always maintains ending merchandise inventory equal to 20% of next months cost of goods sold. It pays for 25% of its merchandise purchases in the month of the purchase and the remaining 75% in the subsequent month. What are the cash disbursements for merchandise purchases that would appear in the companys cash budget for February? Multiple Choice $40,325 $41,325 $38,325 $35,325

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