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The Golden Antique Mall expects to make purchases in the first quarter of 2021 as follows:
January $108,300
February 136,800
March 96,900
Purchases in December 2020 are expected to be $104,200. 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.
Problem 1: Estimate cash disbursements related to purchases for each month of the first quarter of 2021.
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