Walker Company prepares monthly budgets. The current budget plans for a September ending inventory of 28,500 units. Company policy is to end each month with merchandise inventory equal to a specified percent of budgeted sales for the following month. Budgeted sales and merchandise purchases for the next three months follow. Sales (Units) Purchases (Units) July 200,000 219,500 August 330,000 324,000 September 290,000 275,000

Sales (Units) 200,000 330,000 290,000 Purchases (Units) 219,500 324,000 275,000 August September (1) Prepare the merchandise purchases budget for the months of July, August, and September WALKER COMPANY Merchandise Purchases Budget For July, August, and September July August September Budgeted ending inventory units Budgeted units sales for month Required units of available inventory 28,500 290,000 318,500 200,000 330,000 Units to be purchased 219,500 324,000 275,000 (2) Compute the ratio of ending inventory to the next month's sales LI August September Budgeted ending inventory units Next month's budgeted sales Ratio of inventory to next month 28,500 's sales 0 (3) How many units are budgeted for sale in October? Units budgeted for sale in October