Check my work Hardy Company's cost of goods sold is consistently 60% of sales. The company plans ending merchandise inventory for each month equal to 20% of the next month's budgeted cost of goods sold. All merchandise is purchased on credit, and 50% of the purchases made during a month is paid for in that month. Another 35% is paid for during the first month after purchase, and the remaining 15% is paid for during the second month after purchase. Expected sales are August (actual), $325,000; September (actual), $320,000; October (estimated), $250,000; and November (estimated), $310,000. Use this information to determine October's expected cash payments for purchases. Calculate Monthly Purchases: November October 37,200 Budgeted ending inventory Cost of goods sold (estimated) Required available inventory Budgeted beginning inventory Required purchases 186,000 August $ 38,400 195,000 233,400 39,000 $ 194,400 September $ 30,000 192,000 222,000 150,000 187,200 30,000 38,400 183,600 $ $ 157,200 Calculate Payments Made for Inventory: --------- Purchases paid in ---- August September October 233,400 After October Purchases $ 194,400 183,600 August purchases September purchases $ October purchases 157,200 Determine October's Expected Cash Payments for Purchases. October's expected cash payments for purchases