Ferguson Inc $\bullet$ $\bullet$ Ferguson Pays 40% of Merchandise Purchases in the Month Purchased

Essay

Ferguson Inc. provided the following information:
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$\bullet$ Ferguson pays 40% of merchandise purchases in the month purchased and 60% in the following month.
$\bullet$ General operating expenses are budgeted to be $31,000 per month of which depreciation is $3,000 of this amount. Ferguson pays operating expenses in the month incurred.
$\bullet$ Ferguson makes loan payments of $4,000 per month of which $450 is interest and the remainder is principal.
Instructions
Calculate budgeted cash disbursements for May.