Sales = 2400000 2- Inventory decreases 60000 3- Account payable decreases 100000 4- Gross margin 40%

Total Cash Disbursement is1,480,000

 2,400,000 x60% =1,440,000 (cost of goods sold)

1,440,000 -60,000 (inventory decrease) =1,380,000 (Purchases)

1,380,000 +100,000 (accounts payable decrease) =1,480,000 (Cash Disbursement)

CGS =1,440,000 (2,400,000 x60%)

1,440,000 -60,000  =1,380,000 (Purchases)

1,380,000 +100,000 =1,480,000 (Cash Disbursement)

GM = COGS/SALES

= ?? /2400000

COGS=2400000*40/100 =960000

 ID =60000

APD =100000

GP=2400000 -960000 =1440000

cash disbursement = GP+APD-ID

cash disbursement = (1440000 +100000)-60000=1480000

cost of goods sold=1440000-inventry60000=1380000

cost of goods sold1440000-inventry6oooo=1380000+payable100000=1480000 total disbursement