The Gadget Company manufactures a wrist watch for spy agencies. The watch has a built-in cell phone, Geiger counter, compass, magnet and garroting wire. Sales are expected to commence in February and remain level at 10,000 units per month. The watch sells for $2 per unit. The raw materials for the product cost $1 per unit. Raw materials are purchased one month before the expected sales, and suppliers are paid one month after the purchase. Gadget's overhead expenses are $3,750 per month and depreciation is $250 per month. What are total cash outflows (disbursements) in May?
| Sales and Disbursements Forecast |
| | April | May | June |
| Sales Forecast | $20,000 | $20,000 | $20,000 |
| Purchases from Suppliers | | | |
| Payments to Suppliers | | | |
| General & Admin Expenses | | | |
| Depreciation | | | |
| Total Disbursements | | | |
◦ $10,000
◦ $12,950
◦ $13,750
◦ $13,850
◦ $20,000
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