Walker Company prepares monthly budgets. The current budget plans for a September ending merchandise inventory of 44,000 units. Company policy is to end each month with merchandise inventory equal to 20% of budgeted sales for the following month. Budgeted sales and merchandise purchases for the next three months follow. The company budgets sales of 220,000 units in October.

	Sales (Units)			Purchases (Units)
July	170,000				200,000
August	320,000				314,000
September	290,000				276,000

Prepare the merchandise purchases budgets for the months of July, August, and September.

WALKER COMPANY Merchandise Purchases Budget For July, August, and September July August September 44,000 Budgeted ending inventory units Required units of available inventory Units to be purchased 200,000 314,000 276,000