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), $340,000; October (estimated) $250,000; and November (estimated). $390,000 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 Required purchases 5 0 $ 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 Purchasen October's expected cash payments for purchases