Ahmed Company purchases all merchandise on credit. It recently budgeted the month- end accounts payable balances and merchandise inventory balances below. Cash payments on accounts payable during each month are expected to be May, $1,200,000; June, $1,500,000; July, $1,350,000; and August, $1,500,000 Accounts Merchandise Payable Inventory May 31 $160,000 $280,000 June 110,000 200,000 30 July 100,000 100,000 31 August 31 130,000 320,000 (1) Compute the budgeted amounts of merchandise purchases. Budgeted amounts: Ending accounts payable Payments on account Subtotal Beginning accounts payable Purchases June July (2) Compute the budgeted amounts of cost of goods sold. Budgeted amounts: June Beginning inventory Purchases Cost of goods available for sale Ending inventory Cost of goods sold August July August (200,000) (100,000) (320,000)