The Blackbird Company estimates the following cash payments for the month of July: Total Direct Materials Purchases: July $635,000, June $500,000, May $575,000 Total Direct Labor $67,000 Other Manufacturing Costs (Including Depreciation $25,000 ) $160,000 Selling and Administrative Expenses $55,000 Capital Additions $50,000 Dividends to Stockholders $30,000 It is estimated that Material Purchases

are paid at a rate of 70% in the month of purchase, with the remainder paid the following month. All other expenses are paid in the month they occur.
A) $956,500
B) $931,500
C) $972,000
D) $997,000

B