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, $1,500,000: June, $1,550,000; July, $1,350,000, and August. $1,500,000 May 31 June 30 July 31 August 31 Accounts Merchandise Payable Inventory $190,000 $250,000 140,000 400,000 300,000 300,000 130,000 310,000 (1) Compute the budgeted amounts of merchandise purchases Budgeted amounts: June July August Ending accounts payable Payments on account Subtotal 0 0 Beginning accounts payable I I Purchases S 0S 0S August (2) Compute the budgeted amounts of cost of goods sold. Budgeted amounts: June July Beginning inventory Purchases Cost of goods available for sale Ending inventory (400,000) (300,000) Cost of goods sold (310,000)