Hardy Companys cost of goods sold is consistently 70% of sales. The company plans ending merchandise inventory for each month equal to 30% of the next months 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), $365,000; September (actual), $350,000; October (estimated), $260,000; and November (estimated), $340,000. Use this information to determine Octobers expected cash payments for purchases.

Calculate Monthly Purchases
	August	September	October	November
Budget Ending inventory
Cost of goods sold (estimated	255,500	245,000	182,000	238,000
Required available inventory
Budgeted beginning inventory
Required purchases	$	$	$	$

Calculate Payment Made for Inventory Purchase paid in
Purchases	August	September	October	After October
$	$	$	$	$

Determine October's Expected Cash Payments for Purchases
October's expected cash payments for purchases	$