The budget committee of Ridder Company collects the following data for its Westwood Store in preparing budgeted income statements for July and August 2020: 1. The store expects sales for July to be $470,000; for August, $522,000; and for September, $571,000. 2. It expects the cost of goods sold to be 60% of sales. 3. Company policy is to maintain ending merchandise inventory at 20% of the following month's cost of goods sold. 4. Operating expenses are estimated as follows: Sales salaries Advertising $47,000 per month 4% of monthly sales Rent expense $2.900 per month Depreciation 600 per month Delivery expense Sales commissions 2% of monthly sales 3% of monthly sales Utilities 600 per month Insurance 300 per month E 5. Income taxes are estimated to be 30% of the income from operations. 5. Income taxes are estimated to be 30% of the income from operations Mut (a) Prepare the merchandise purchases budget, using columns for each month. RIDDER COMPANY-Westwood Store Merchandise Purchases Budget For the Months of July and August, 2020 July Merchandise purchases required $ August Qu Mul Q M Prepare the merchandise purchases budget, using columns for each month. RIDDER COMPANY-Westwood Store Merchandise Purchases Budget For the Months of July and August, 2020 Merchandise purchases required July $ August