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Fraser's Ridge, Inc. is a retailer of building supplies in North Carolina. In the current...

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Accounting

Fraser's Ridge, Inc. is a retailer of building supplies in North Carolina. In the current year, actual May sales revenue totaled $500,000 and the cost of these sales was $100,000. June sales are expected to increase by15% over the sales of May, and July sales are expected to be grow by20% over the sales of June. August sales are anticipated to be $450,000. Prices are set to achieve a 55% gross profit.
The company wants to maintain a safety stock in their ending inventory equal to30% of next month's cost of sales. The ending inventory requirement was met at the end of May. Accounts payable consist solely of inventory purchases. Purchases from suppliers carry payment terms of net 30. What are Fraser's Ridge's expected cash disbursements in August?
Question 6 options:
$278,100
$274,275
$247,500
$141,750
$177,625

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