Question: Refer to the Grippers inventory purchases and cost of goods

Refer to the Grippers inventory, purchases, and cost of goods sold budget you pre-pared in Short Exercise S22A- 16. December sales, given in Short Exercise S22A- 17, were $ 425,000. Assume Grippers pays for inventory purchases 50% in the month of purchase and 50% in the month after purchase. Prepare a schedule for the budgeted cash payments for purchases for January and February.
Exercise S22A- 16
Grippers expects cost of goods sold to average 60% of sales revenue, and the company expects to sell 4,100 pairs of shoes in March for $ 260 each. Grippers’ target ending inventory is $ 10,000 plus 50% of the next month’s cost of goods sold. Use this information and the sales bud-get prepared in Short Exercise S22A- 15 to prepare Grippers’ inventory, purchases, and cost of goods sold budget for January and February.

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