Question 2: Merchandise Purchases Budget (10 marks) Shoes R Us has assembled the following information to prepare a Merchandise Purchases Budget for the month of September 2021. Expected Sales September October $ S 700.000 800 000 Cost of goods sold 6596 (% of sales Desired ending merchandise inventory 2596 (% of following month's cost of goods sold) 1 2 Note: The beginning inventory on September 1st, 2021 will be the desired amount 3 4 Required (round all answers to the nearest dollar-ne decimals): 3 6 3. Prepare a merchandise purchases budget in dollars for September 2021. (6 marks) + Shoes R Us Merchandise Purchases Budget For the month ended September 2021 Amount 20 Buopeted cost of goods sold 21 Desired ending merchandise inventory 22 Total merchandise needs 11 Beginning merchandise inventory Required merchandise purchases b. Assume Shoes R Us sales are much higher than budgeted. What is the impact on revenues and income? What is the impact on Inventory? (2 marks)