The Express Company Is Preparing Its Cash Budget for the Month

The Express Company is preparing its cash budget for the month of June. The following information is available concerning its inventories:
$$\begin{array} { l r } \text { Inventories at beginning of June } & 67,500 \\\text { Estimated purchases of June } & 330,000 \\\text { Estimated cost of goods sold for June } & 337,500 \\\text { Estimated payments in June for purchases in May } & 56,250 \\\text { Estimated payments in June for purchases prior to May } & 15,000 \\\text { Estimated payments in June for purchases in June } & 80 \%\end{array}$$
What are the estimated cash disbursements for inventories in June?

A) $264,000.
B) $320,250.
C) $335,250.
D) $341,250.

Correct Answer:

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