Cathy Company is a retail store that started operations on June 1. For purposes of budget preparation, assume the following: Expected sales for the first four months are: June................. $10,000 July................ $16,000 $24,000 $25,000 August... September.............. Cathy's cost of goods sold generally runs at 60 percent of sales. In order to have adequate stocks of inventory on hand, the company attempts to have inventory at the end of each month equal to forty percent of the next month's projected cost of goods sold. Merchandise purchases in August are budgeted to be: O $14,700 O $20,400 O $14,640 O $14,400 O $14,160