Molina, Inc $\bullet$ Molina Estimates That It Will Collect 40% of Its Sales

Essay

Molina, Inc. provided the following information:
$\bullet$

Molina estimates that it will collect 40% of its sales in the month of sale, 35% in the month after the sale, and 22% in the second month following the sale. Three percent of all sales are estimated to be bad debts.
$\bullet$ Molina pays 30% of merchandise purchases in the month purchased and 70% in the following month.
$\bullet$ General operating expenses are budgeted to be $20,000 per month of which depreciation is $2,000 of this amount. Molina pays operating expenses in the month incurred.
$\bullet$ Molina makes loan payments of $3,000 per month of which $400 is interest and the remainder is principal.
Instructions
Calculate Molina's budgeted cash disbursements for August.