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, $1,550,000, July, $1,300,000; and August $1,400,000 May 31 June 30 July 31 August 31 Accounts Merchandise Payable Inventory $170,000 $240,000 180,000 200,000 200,000 200,000 100,000 330,000 August (1) Compute the budgeted amounts of merchandise purchases. Budgeted amounts: June July Ending accounts payable Payments on account Subtotal 0 0 Beginning accounts payable Purchases 0 $ 0 $ 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 (200,000) (200,000) Cost of goods sold (330,000) 36 SHE