Hardy Company's cost of goods sold is consistently 70% of sales. The company plans ending merchandise...

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Hardy Company's cost of goods sold is consistently 70% of sales. The company plans ending merchandise inventory for each month equal to 20% of the next month's budgeted cost of goods sold. All merchandise is purchased on credit, and 50% of the purchases made during a month is paid for in that month. Another 35% is paid for during the first month after purchase, and the remaining 15% is paid for during the second month after purchase. Expected sales are August (actual), $345,000; September (actual), $400,000; October (estimated), $340,000; and November (estimated), $360,000. Use this information to determine October's expected cash payments for purchases. Calculate Monthly Purchases: Budgeted ending inventory Cost of goods sold (estimated) Required available inventory Budgeted beginning inventory Required purchases Calculate Payments Made for Inventory: August purchases September purchases October purchases August September October November 0 56,000 47,600 0 $ (56,000) $ (47,600) Purchases paid in Purchases August September $ 168,000 0 Determine October's Expected Cash Payments for Purchases. October's expected cash payments for purchases October After October Hardy Company's cost of goods sold is consistently 70% of sales. The company plans ending merchandise inventory for each month equal to 20% of the next month's budgeted cost of goods sold. All merchandise is purchased on credit, and 50% of the purchases made during a month is paid for in that month. Another 35% is paid for during the first month after purchase, and the remaining 15% is paid for during the second month after purchase. Expected sales are August (actual), $345,000; September (actual), $400,000; October (estimated), $340,000; and November (estimated), $360,000. Use this information to determine October's expected cash payments for purchases. Calculate Monthly Purchases: Budgeted ending inventory Cost of goods sold (estimated) Required available inventory Budgeted beginning inventory Required purchases Calculate Payments Made for Inventory: August purchases September purchases October purchases August September October November 0 56,000 47,600 0 $ (56,000) $ (47,600) Purchases paid in Purchases August September $ 168,000 0 Determine October's Expected Cash Payments for Purchases. October's expected cash payments for purchases October After October