Ahmed Company purchases all merchandise on credit. It recently budgeted the following month-end accounts payable balances and merchandise inventory balances. Cash payments on accounts payable during each month are expected to be: May, $1,100,000; June $1,400,000; July, $1,300,000; and August, $1,400,000 Accounts Merchandise Payable Inventory May 31 June 30 July 31 August 31 $180,000 280,000 110,000 500,000 300,000 200,000 180,000 370,000 (1) Compute the budgeted amounts of merchandise purchases Budgeted amounts June August Ending accounts payable Payments on account Subtotal Beginning accounts payable Purchases (2) Compute the budgeted amounts of cost of goods sold Budgeted amounts June July August Beginning inventory Purchases Cost of goods available for sale Ending inventory Cost of goods sold (500,000) (200,000) (370,000)