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, $1,300,000; June $1,400,000; July, $1,350,000; and August, $1,300,000 Merchandise Accounts Payable $140,000 130,000 400,000 140,000 Inventory $290,000 200,000 500,000 350,000 May 31 June 30 July 31 August 31 (1) Compute the budgeted amounts of merchandise purchases. July Budgeted amounts: June August Ending accounts payable Payments on account Subtotal Beginning accounts payable 0S 0S 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 (200,000) (500,000) (350,000) Cost of goods sold