Quick Dollar 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, $1,600,000; June, $1,490,000; July, $1,425,000; and August, $1,495,000.

Use the available information to compute the budgeted amounts of
(1) Merchandise purchases for June, July, and August
(2) Cost of goods sold for June, July, andAugust.

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May 3.. .. June 30 . July 31 August 31... Accounts Payable $150.000 200,000 235,000 195,000 Merchandise Inventory $250,000 400,000 300,000 330,000