Determining the amount of expected inventory purchases ans cash payments:Brichem company , which sells electric razors had 260,000 of cost of good sold during the month of June. the company projects a 5 percent increase in cost of good sold during July. the inventory balance as of June 30 is $28,000 and the desired ending inventory balance for July is $29,000. Birchem pays cash to settle 70 percent of its purchases on account during the month of purchase and pays the remaining 30 percent in the month following the purchase. the accounts payable balance as of june 30 was 35,000. answer the following questions:
A) determine the amount of purchases budgeted for July.
B)determine the amount of cash payments budgeted for inventory purchases in July.