Finch Company, which sells electric razors, had $390,000 of cost of goods sold during the month of June. The company projects a 10 percent increase in cost of goods sold during July. The inventory balance as of June 30 is $28.000, and the desired ending inventory balance for July is $29,000. Finch pays cash to settle 75 percent of its purchases on account during the month of purchase and pays the remaining 25 percent in the month following the purchase. The accounts payable balance as of June 30 was $35,000. Required a. Determine the amount of purchases budgeted for July b. Determine the amount of cash payments budgeted for inventory purchases in July Budgeted purchases 6. Cash payments 430,000 357.500 S O'Hare Company is in the process of preparing a purchases budget for the first quarter of Year 2. The company has budgeted sales as follows: Dec. Year 1 Jan. Year 2 Feb. Year 2 Mar. Year 2 $49,000 $51,500 $56,000 $66,500 Cost of goods sold is expected to be 75% of sales. The company would like to have ending Inventory each month equal to 25% of the following month's predicted cost of sales. The total cost of purchases required for January Year 2 would be