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), $395,000; September (actual), $360,000; October (estimated), $340,000; and November (estimated), $370,000. Use this information to determine October's expected cash payments for purchases. Calculate Monthly Purchases: Budgeted ending inventory Required available inventory Required purchases Calculate Payments Made for Inventory: August purchases September purchases October purchases August September October November $ 415,000 $ 0 $ 0 $ 0 -Purchases paid in Purchases August September October After October 0 Determine October's Expected Cash Payments for Purchases. October's expected cash payments for purchases