In December of 2012, Jones Inc

Multiple Choice

In December of 2012, Jones Inc. was formed as a corporation. The company plans to start its operations in early January of 2013. They have the following purchases budgeted for the first quarter of 2013: Jones has worked out agreements with its various suppliers to pay for one-fourth of a month's purchases each month, beginning in the month of purchase, until the purchases are paid in full. No purchases were made prior to January.
What are expected total cash disbursements for the first quarter of 2013?

A) $425,000
B) $625,000
C) $775,000
D) $350,000