Hardy Company's cost of goods sold is consistently 60% of sales. The company plans ending merchandise inventory for each month equal to 30% of the next month's budgeted cost of goods sold. All merchandise is purchased on credit, and 40% of the purchases made during a month is paid for in that month. Another 45% is paid for during the first month after purchase, and the remaining 15% Is pald for during the second month after purchase. Expected sales are August (actual), $365,000; September (actual), $390,000; October (estimated), $340,000; and November (estimated) $360,000. 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 s 0 S s 0 Calculate Payments Made for Inventory: - Purchases paid in September October Purchases August After October August purchases September purchases October purchases 0 Determine October's Expected Cash Payments for Purchases. October's expected cash payments for purchases