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.