Harwood Company Budgeted the Following Information for 2010 $\bullet$ Cost of Goods Sold Is 40% of Sales

Harwood Company budgeted the following information for 2010:
$\bullet$ Cost of goods sold is 40% of sales. Accounts payable is used only for inventory acquisitions.
$\bullet$ Harwood purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month.
$\bullet$ Selling and administrative expenses are budgeted at $40,000 for May and are expected to increase 5% per month. They are paid during the month of acquisition. In addition, budgeted depreciation is $10,000 per month.
$\bullet$ Income taxes are $38,400 for July and are paid in the month incurred.
Instructions
Compute the amount of budgeted cash disbursements for July.