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Question - The Duffy Dog Antique Mall expects to make purchases in the first quarter of 2021 as follows:
January $121,600
February 153,600
March 108,800
Purchases in December 2020 are expected to be $116,800. The company expects that 50 percent of a month's purchases will be paid in the month of purchase and 50 percent will be paid in the following month.
Required - Estimate cash disbursements related to purchases for each month of the first quarter of 2021.
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