Walker Company prepares monthly budgets. The current budget plans for a September ending inventory of 30,000 units. Company policy is to end each month with merchandise inventory equal to a specified percent of budgeted sales for the following month. Budgeted sales and merchandise purchases for the next three months follow.

Sales (Units)

Purchases (Units)

July

180,000

200,250

August

315,000

308,250

September

270,000

259,500

(1) Prepare the merchandise purchases budget for the months of July, August, and September.
WALKER COMPANY
Merchandise Purchases Budget
For July, August, and September
	July	August	September
Budgeted ending inventory units			30,000
Budgeted units sales for month
Required units of available inventory
Beginning inventory (units)
Units to be purchased	200,250	308,250	259,500
(2) Compute the ratio of ending inventory to the next months sales.
	July	August	September
Budgeted ending inventory units			30,000
Next month's budgeted sales
Ratio of inventory to next month's sales		0
(3) How many units are budgeted for sale in October?
Units budgeted for sale in October