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.