Hallmart Expects to Make Inventory Purchases in the Next Three $$\begin{array} { l r } \text { April } & \$ 56,000 \\\text { May } & 80,000 \\\text { June } & 90,000\end{array}$$

question 132

Multiple Choice

Hallmart expects to make inventory purchases in the next three months as follows: $$\begin{array} { l r } \text { April } & \$ 56,000 \\\text { May } & 80,000 \\\text { June } & 90,000\end{array}$$ Prior experience has shown that 35% of a month's purchases are paid in the month of purchase and 65% in the month following purchase.March purchases were $65,000.How much are cash disbursements for purchases during May?

• A)$28,000
• B)$86,500
• C)$71,600
• D)$64,400

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