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Estimate Cash Disbursements
Ashland Corporation, a merchandising firm, is preparing its cash budget for October. The following information is available concerning its inventories:
Inventories at beginning of October
$135,000
Estimated purchases for October
660,000
Estimated cost of goods sold for October
675,000
Estimated payments in October for purchases in September
165,000
Estimated payments in October for purchases prior to September
30,000
Estimated payments in October for purchases in October
70%
Required
What are the estimated cash disbursements in October?
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