Hardy Companys cost of goods sold is consistently 60% of sales. The company plans ending merchandise inventory for each month equal to 20% of the next months 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), $335,000; September (actual), $370,000; October (estimated), $320,000; and November (estimated), $350,000. Use this information to determine Octobers expected cash payments for purchases.

Calculate monthly purchases:

Calculate payments made for inventory:

Determine October's expected cash payments for purchases: