Aquaman Limited is a retailer of sneakers and the sales budget for September and October 2020 are $800,000 and $750,000, respectively. Cost of goods sold is estimated to be 60% of sales. The beginning inventory for September is $240,000, and the company has a policy that ending inventory should be sufficient to cover 50% of the following months sales. All purchases are credit purchase, among which 70% are paid in the following month of the purchase, and the remaining 30% will be paid in the second month of the purchase.

Required:

(a) Using the following template and prepare an inventory purchases budget for Aquaman Limited in September 2020.

(4 marks)

Purchases Budget	September
Cost of goods sold	$
Closing Inventory	$
Inventory available for sale	$
Less: Opening Inventory	$
Purchases	$

Working:

(b) What is the projected balance of accounts payable on 30 September 2020, assuming the total inventory purchase in August is $530,000?

(2 marks)