Sheridan Company estimates that 2025 sales will be $35,200 in quarter 1, $42,240 in quarter 2, and $51,040 in quarter 3. Cost of goods sold is 50% of sales. Management desires to have ending merchandise inventory equal to 10% of the next quarter's expected cost of goods sold. Prepare a merchandise purchases budget by quarter for the first 6 months of 2025. Budgeted Cost of Goods Sold Add : Desired Ending Merchandise Inventory Total + Less : Beginning Merchandise Inventory Desired Ending Finished Goods Inventory + + SHERIDAN COMPANY Merchandise Purchases Budget For the Six Months Ending June 30, 2025 $ $ 1 Quarter I $ 2 LA $ Six Months

Sheridan Company estimates that 2025 sales will be $35,200 in quarter 1,$42,240 in quarter 2 , and $51,040 in quarter 3 . Cost of goods sold is 50% of sales. Management desires to have ending merchandise inventory equal to 10% of the next quarter's expected cost of goods sold. Prepare a merchandise purchases budget by quarter for the first 6 months of 2025