BW Department Store expects to generate the following sales for the next three months:

July

August

September

Expected sales

$490,000

$540,000

$580,000

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BW's cost of goods sold is 60% of sales dollars. At the end of each month, BW wants a merchandise inventory balance equal to 25% of the following month's expected cost of goods sold. What dollar amount of merchandise inventory should BW plan to purchase in August?