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), $425,000, September (actual), $370,000 October (estimated) $350,000, and November (estimated). S400,000 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 $ 0 $ Calculate Payments Made for Inventory Purchases Purchases paid in September October 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