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Bearcat company, a merchandising company, started its business at the beginning of the year 2020. The...

Bearcat company, a merchandising company, started its business at the beginning of the year 2020. The company sets the unit selling price as 120% of the total of cost of goods sold per unit. 40% of the payment for merchandise purchases is made with cash in the month of purchase, and 60% is expected to be paid in the following month. The company maintains at the end of each month an inventory of 30% of the next month's cost of goods sold. Budgeted sales for the next three months are as follows: January $9,600 February $12,000 March $16,500 The unit selling price and unit purchase cost do not change for the next three months. What is the expected cash disbursement in February for merchandise purchases?

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The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

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