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What is the forecasted cash disbursement for inventory

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Question - Company A plans to begin their operations in January of 2016 and has forecasted the following inventory purchases, all on credit:

January 2016 $200,000

February 2016 $250,000

March 2016 $300,000

April 2016 $325,000

They project that they will pay for 25% of their monthly inventory purchases in the month of the purchase, 35% in the month following the purchase, and 40% in the second month following the purchase.

What is the forecasted cash disbursement for inventory purchases for the four-month period (January through April)?

Reference no: EM132534039

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