Hammond's Cookie Toppings Makes Payments on Its Inventory Purchases as Follows

Hammond's Cookie Toppings makes payments on its inventory purchases as follows: 30% in the month of purchase, 65% in the following month, and 5% in the second month following purchase. Budgeted inventory purchases for June, July, and August are $$16,000, $19,000 and $22,000, respectively. What is the budgeted amount of cash payments to account for inventory in August at Hammond's Cookie Toppings?

A) $18,250
B) $6550
C) $2850
D) $19,750

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