The ABC Company, a merchandising firm, has budgeted its action for December according to the following information:
• Sales at $560,000, all for cash.
• The invoice cost for goods purchased represents 73% of the sales price. All purchases are paid in cash.
• Merchandise inventory on November 30 was $160,000.
• Budgeted depreciation for December is $45,000.
• The cash balance at December 1 was $40,000.
• Selling and administrative expenditures are budgeted at $79,000 for December and are paid in cash.
• The planned merchandise inventory on 31 December is $270,000.
The total budgeted cash disbursements for December are:
A) $597,800
B) $524,600
C) $473,800
D) $518,800