Exercise 22-24A 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 42,000 units Company policy is to end each month with merchandise inventory equal to 20% of budgeted sales for the following month. Budgeted sales and merchandise purchases for the next three months follow. The company budgets sales of 210,000 units in October Sales (Units) July August September 190,000 310,000 280,000 Purchases (Units) 214,000 304,000 266,000 Prepare the merchandise purchases budgets for the months of July, August, and September WALKER COMPANY Merchandise Purchases Budget For July, August, and September August September Lu Budgeted ending inventory units 42,000 Required units of available inventory Units to be purchased 214,000 304,000 266,000