MANAGERCIAL ACCOUNTING ACCT 202 ACCOUNTING ACCT 250-50 SPRING 2016 Chapter 20 Questi 8 (of 20) 10.00 points Hardy Company's cost of goods sold is consistently 70% of sales. The company plans to carry 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), $325,000; September (actual), $370,000; October estimated), $280,000; and November estimated), $350,000. Use this information to determine October's expected cash payments for purchases. lculate monthly purchases: October August September November Budgeted ending inventory Required available inventory Required purchases lculate payments made for inventory: Purchases paid in Purchases August September October After October August purchases September purchases October purchases Determine October's expected cash payments for purchases October's expected cash payments for purchases Hints References eBook & Resources Hint #1 Check my work Chris Brose instructions help Save & Exit submit