What are the cash disbursements for inventory in February

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Question - Animal Palaces buys dog and cat houses from wholesalers and sells them to the public. The budgeted sales for Animal Palaces for February and March are as follows:

February $210,000

March $300,000

Cost of goods sold for the company is 30% of sales. Company policy states ending inventory must be 120% of next month's cost of goods sold. 60% of inventory purchases are paid for in the month of purchase, with the rest paid in the following month. The budgeted cost of inventory purchases in January is $50,000. Based on this information, what are the cash disbursements for inventory in February?

Reference no: EM133053647

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