Chain Inc Provided the Following Information Chain Pays 40% of Merchandise Purchases in the Month Purchased

Chain Inc. provided the following information:

$\begin{array}{llcc}& \text { April } & \text {May } & \text { June } \\\text { Projected merchandise purchases } &\$ 92,000 & \$ 80,000 & \$ 6,000\\\end{array}$
Chain pays 40% of merchandise purchases in the month purchased and 60% in the following month.
$\bullet$ General operating expenses are budgeted to be $31000 per month of which depreciation is $3000 of this amount. Chain pays operating expenses in the month incurred.
$\bullet$ Chain makes loan payments of $4000 per month of which $450 is interest and the remainder is principal.
Instructions
Calculate budgeted cash disbursements for May.

Correct Answer:

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