E-Sound, a merchandising company specializing in home computer speakers, budgets its monthly cost of goods sold to equal 50% of sales. Its inventory policy calls for ending inventory in each month to equal 40% of the next month’s budgeted cost of goods sold. All purchases are on credit, and 40% of the purchases in a month is paid for in the same month. Another 40% is paid for during the first month after purchase, and the remaining 20% is paid for in the second month after purchase. The following sales budgets are set: July, $200,000; August, $140,000; September, $170,000; October, $125,000; and November, $115,000. Compute the following:
(1) Budgeted merchandise purchases for July, August, September, and October;
(2) Budgeted payments on accounts payable for September and October; and
(3) Budgeted ending balances of accounts payable for September and October.