Hardy Company's cost of goods sold is consistently 70% 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 paid for during the second month after purchase. Expected sales are August (actual), $385,000; September (actual), $330,000; October (estimated), $300,000; and November (estimated), $350,000. Use this information to determine October's expected cash payments for purchases. Calculate Monthly Purchases: August September October November 269,500 Budgeted ending inventory Cost of goods sold (estimated) Required available inventory Budgeted beginning inventory Required purchases $ 0 $ 0 $ 0 Calculate Payments Made for Inventory: ---------- Purchases paid in -------- September October After October Purchases August August purchases September purchases October purchases ol Determine October's Expected Cash Payments for Purchases. October's expected cash payments for purchases