Mickey Company Has the Following Information Purchases Are Paid for in the Following Manner

Mickey Company has the following information: $$\begin{array} { l c } \text { Month } & \text { Budgeted Purchases } \\\text { January } & \$ 26,800 \\\text { February } & 29,000 \\\text { March } & 30,520 \\\text { April } & 29,480 \\\text { May } & 27,680\end{array}$$ Purchases are paid for in the following manner: $10 \%$ in the month of purch ase
$50 \%$ in the month after purch as e
$\mathbf { 4 0 } \%$ two months after purch as e is the estimated cash disbursement in March from January purchases.

A) $13,400
B) $10,720
C) $3,052
D) $12,208

Correct Answer:

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