Quick Dollar Company purchases all merchandise on credit. It recently budgeted the following month end accounts payable balances and merchandise inventory balances. Cash payments on accounts payable during each month are expected to be: May, $1,600,000; June, $1,490,000; July, $1,425,000; and August, $1,495,000.
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Use the available information to compute the budgeted amounts of
(1) Merchandise purchases for June, July, and August
(2) Cost of goods sold for June, July, and August.