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Lowe Ridge has budgeted its activity for December according to the following information:
1. Sales at $400,000, all for cash.
2. Budgeted amortization for December is $10,000.
4. The cash balance at December 1 was $10,000.
5. Selling and administrative expenses are budgeted at $40,000 for December and are paid for in cash.
6. The planned merchandise inventory on December 31 and December 1 is $12,000.
7. The invoice cost for merchandise purchases represents 75% of the sales price. All purchases are paid in cash.
Problem 1: How much are the budgeted cash disbursements for December?
Option A. $230,000
Option B. $328,000
Option C. $340,000
Option D. $350,000
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