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). $325,000: September (actual). $320,000 October (estimated). $250,000, and November (estimated) $310,000. Use this information to determine October's expected cash payments for purchases. Calculate Monthly Purchases: August September October November Budgeted ending inventory Required available inventory Required purchases $ 0 $ 0 $ Calculate Payments Made for Inventory: --------- Purchases paid in ------- September October After October Purchases August August purchases September purchases October purchases Determine October's Expected Cash Payments for Purchases. October's expected cash payments for purchases