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 35% is paid for during the first month after purchase, and the remaining 25% is paid for during the second month after purchase. Expected sales are: August (actual), $385,000; September (actual), $320,000; October (estimated), $270,000; and November (estimated), $330,000 Use this information to determine October's expected cash payments for purchases Calculate Monthly Purchases: August September October November Budgeted ending inventory Required available inventory Required purchases 0 S 0 S Calculate Payments Made for Inventory: - Purchases paid in September Purchases August October After October August purchases September purchases October purchases Determine October's Expected Cash Payments for Purchases October's expected cash payments for purchases