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The Granger Antique Mall expects to make purchases in the first quarter of 2018 as follows:
January $85,000
February 96,000
March 79,000
Purchases in December 2017 are expected to be $88,000. The company expects that 55 percent of a month's purchases will be paid in the month of purchase and 45 percent will be paid in the following month.
Problem 1: Estimate cash disbursements related to purchases for each month of the first quarter of 2018.
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