Powerdyne companys cost of goods sold is consistently 60

Reference no: EM13483974

Powerdyne Company's cost of goods sold is consistently 60% of sales. The company plans to carry ending merchandise inventory each month equal to 40% 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 dollar sales are:
August (actual)	$150,000.00
September (actual)	$350,000.00
October (estimated)	$200,000.00
November (estimated)	$300,000.00

Use this information to determine October's expected cash payments for purchases.

Reference no: EM13483974

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