Exercise 20-24A Merchandising: Preparation of purchases budgets (for three periods) LO P4 Walker Company prepares monthly budgets. The current budget plans for a September ending merchandise inventory of 30,000 units. Company policy is to end each month with merchandise inventory equal to 15% of budgeted sales for the following month. Budgeted sales and merchandise purchases for the next three months follow. The company budgets sales of 200,000 units in October Sales (Units) Purchases (Units) July 180,000 200,250 August 315,000 308,250 September 270,000 259,500 Prepare the merchandise purchases budgets for the months of July, August, and September WALKER COMPANY Merchandise Purchases Budget For July, August, and September July August September 30.000 Budgeted ending Inventory units Required units of available inventory 200,250 308.250 Units to be purchased 259.500