Exercise $13-37($Algo$)$ Estimate Purchases and Cash Disbursements $($LO $13-3,4)$

Montrose Instrumentation produces measurement equipment. One component, used in a variety of the company's products, is critical

and the supply chain often breaks. For that reason, Montrose has a policy to hold in inventory enough of the component to produce

three month's worth of sales $($one component is used in each unit of product in which it is used$).$ On February $1,$ the company has

$43,000$ components in stock. Sales of the units in which the component is used in each of the next six months are estimated to be as

follows:

Parts are purchased at a wholesale price of $$58.$ The vendor has a financing arrangement by which Montrose pays $40$ percent of the

purchase price in the month when the components are delivered and $60$ percent in the following month. Montrose purchased $44,000$

parts in January.

Required:

a$.$ Estimate purchases of the component $($in units$)$ for February and March.

b$.$ Estimate the cash disbursements for the component in February and March.

Complete this question by entering your answers in the tabs below.

Estimate purchases of the component $($in units$)$ for February and March.