Dollar Value Company purchases all merchandise on credit. It recently budgeted the following month-end accounts payable balances and merchandise inventory balances. Cash payments on accounts payable during each month are expected to be: May, $1,500,000; June, $1,530,000; July, $1,350,000; and August, $1,495,000. Use the available information to compute the budgeted amounts of
(1) Merchandise purchases for June, July, and August, and
(2) Cost of goods sold for June, July, andAugust.

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Accounts Payable $120,000 70,000 300.000 150,000 Merchandise Inventory May 3 June 30. July 31. August 31 . . $250,000 200,000 250.000 350.000