Hardy Company's cost of goods sold is consistently 70 % 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 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 paid for during the second month after purchase. Expected sales are: August (actual), $415,000; September (actual), $390,000; October (estimated). $320,000, and November (estimated). $380,000. 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 0S Calculate Payments Made for Inventory: Purchases paid in Purchases August September October After October August purchases September purchases