Quick Dollar Company purchases all merchandise on credit. It recently budgeted the following month-end accounts payable balances and merchandise inventory balances. Cash payments on accounts payable during each month are expected to be: May, $1,300,000; June, $1,400,000; July, $1,450,000; and August, $1,200,00004

May 31 Acounts Payable: $120,000 Merchendise Inventory: $220,000

June 30 Accounts Payable: $160,000 Merchandise Inventory $500,000

July 31 Accounts Payable: $200,000 Merchandise Inventory $300,000

Aug 31 Accounts Payable: $140,000 Merchandise Inventory $370,000

1.) Compute the budgeted amounts of merchandise purchases.

2.) Compute the budgeted amounts of cost of goods sold.