Hardy Company's cost of goods sold is consistently 60% of sales. The company plans ending merchandise Inventory for each month equal to 20% of the next month's 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). $345,000: September (actual), $350,000; October (estimated). $320,000; and November (estimated) $390,000. Use this information to determine October's expected cash payments for purchases. Calculate Monthly Purchases: August September October November Budgeted ending inventory Cost of goods sold (estimated) Required available inventory Budgeted beginning inventory Required purchases Calculate Payments Made for Inventory: Purchases paid in September October Purchases August After October August purchases September purchases October purchases Determine October's Expected Cash Payments for Purchases. October's expected cash payments for purchases