Problem7 Sam month pany, which sells luxury goods, had $350,000 of cost of goods sold during the anuary. The company projects a 7 percent increase in cost of goods sold of J during February. The inventory balance as of January 31 is $85,000, and the desired ending inventory balance for February is $62.000. Sam must pay cash to settle at least 40 percent of its purchases on account during the month of purchase and pays the remaining 60 percent in the month following the purchase. The ac balance as of January 30 was $190,000. counts payable Required a. Determine the amount of purchases budgeted for February. b. Determine the amount of cash payments budgeted for inventory purchases in February