Ahmed Company buys all goods on credit. It recently budgeted the following month-end debt balances and merchandise inventory balances. Cash

Ahmed Company buys all goods on credit. It recently budgeted the following month-end debt balances and merchandise inventory balances. Cash

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Ahmed Company buys all goods on credit. It recently budgeted the following month-end debt balances and merchandise inventory balances. Cash
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Ahmed Company buys all goods on credit. It recently budgeted the following month-end debt balances and merchandise inventory balances. Cash payments in accounts payable each month: May, $1,200,000; June, $1,500,000; July, $1,400,000; and August, $1,400,000

accounts
payable
goods inventory31 May$150.000
$260.000
30 June
130.000

500.000
31 July
300.000

300.000
31 August
120.000

330.000

Required(1) Calculate the budgeted purchases of goods.(2) Calculate the budgeted cost of goods sold amounts.

Expert Answer:

Answer rating: 100% (QA)

1 To calculate the budgeted purchases of goods we need to find the change in accounts payable during each month This can be done by comparing the acco
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