Every Month, Lambert Must Make the Following Payments In Mid-October, Lambert Expects to Buy a New Computer for Rent

Every month, Lambert must make the following payments:
$\begin{array}{lr}\text { Rent } & \$ 5,000 \\\text { Wages } & \$ 14,000 \\\text { Utilities } & \$ 3,000 \\\text { Telephone } & \$ 400 \\\text { Loan on equipment } & \$ 1,200\end{array}$ In mid-October, Lambert expects to buy a new computer for $4,500 using the company credit card. Typically, the credit card bill is paid in full in the following month. September credit card purchases totaled $6,000.
-Refer to Figure 9-7. What is Lambert's expected cash disbursement in October for purchases of goods?

A) $140,000
B) $130,000
C) $112,000
D) $138,000
E) $26,000

Correct Answer:

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