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Question - The Othella Harrington Company, a retail operation, is preparing a cash budget for the month of August. The following information describes anticipated inventory transactions.
Budgeted inventory at the beginning of August $180,000
Budgeted cost of sales for August 900,000
Budgeted inventory at the end of August 160,000
Estimated cash payments for inventory purchased prior to August are $210,000. Estimated percentage of August inventory purchases paid during August are 80%.
What is the budgeted cash disbursement for inventory during August?
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