Answer:
Total cash disbursement in July= $674,000
Explanation:
First, we must determine the cash disbursements from July purchases and expenses:
Cash disbursements from July:
Cash operating expenses July= 180,000
Merchandise purchases in July= 560,000*0.4= 224,000
Total cash from July= $404,000
Depreciation is not a cash disbursement cost.
Now, from June and before:
Estimated payments in July for June purchases 220,000
Estimated payments in July for purchases before June 50,000
Total cash disbursement in July= 404,000 + 220,000 + 50,000
Total cash disbursement in July= $674,000
