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It is November 1 of Year 1. Sales for Julian Company for November and December of Year 1 and January (of Year 2) are forecasted

It is November 1 of Year 1. Sales for Julian Company for November and December of Year 1 and January (of Year 2) are forecasted to be as follows:

November, 300,000; December 700,000; January, 200,000

On average, cost of goods sold is 60% of sales. During this period, Julian Company expects inventory levels to remain constant. This means that inventory purchases are expected to equal the amount of cost of goods sold.

100% of purchases are on credit. Of the credit purchases, 5% are paid during the month of the purchase, 35% in the month following the purchase, and 60% in the second month following the purchase. Sales for September and October of Year 1 were 100,000 and 150,000, respectively.

What is the forecasted amount of total cash payments for purchases in November of Year 1? (Note: This is the sum of immediate payments from cash purchases, same-month cash payments of credit purchases, and cash payments for credit purchases made in prior months.)

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