Hallmart expects to make inventory purchases in the next three months as follows: Prior experience has shown that 35% of a month's purchases are paid in the month of purchase and 65% in the month following purchase. March purchases were $65,000. How much are cash disbursements for purchases during May?
A) $28,000
B) $86,500
C) $71,600
D) $64,400
Correct Answer:
Verified
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