Crane Company estimates that 2025 sales will be $42,400 in quarter 1, $50,880 in quarter 2, and $61,480 in quarter 3. Cost of goods sold is 50% of sales. Management desires to have ending merchandise inventory equal to 10% of the next quarter's expected cost of goods sold. Prepare a merchandise purchases budget by quarter for the first 6 months of 2025. Budgeted Cost of Goods Sold Add : Desired Ending Merchandise Inventory Total Less : Beginning Merchandise Inventory Required Merchandise Purchases $ CRANE COMPANY Merchandise Purchases Budget 1 21250 2544 23794 2125 21669 Quarter $ $ 2 25440 6148 31588 2544 29044 LA $ Six

Crane Company estimates that 2025 sales will be $42,400 in quarter 1,$50,880 in quarter 2 , and $61,480 in quarter 3 . Cost of goods sold is 50% of sales. Management desires to have ending merchandise inventory equal to 10% of the next quarter's expected cost of goods sold Prepare a merchandise purchases budget by quarter for the first 6 months of 2025. Crane Company estimates that 2025 sales will be $42,400 in quarter 1,$50,880 in quarter 2 , and $61,480 in quarter 3 , Cost of goods sold is 50% of sales. Management desires to have ending merchandise inventory equal to 10% of the next quarter's expected cost of goods sold. Prepare a merchandise purchases budget by quarter for the first 6 months of 2025