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, $1,200,000; June, $1,450,000; July, $1,400,000; and August, $1,300,000

Accounts

PayableMerchandise InventoryMay 31$120,000$280,000June 30160,000400,000July 31400,000200,000August 31120,000370,000