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Cave Hardware's forecasted sales for April, May, June, and July are $150,000, $220,000, $190,000, and...

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Accounting

Cave Hardware's forecasted sales for April, May, June, and July are $150,000, $220,000, $190,000, and $210,000, respectively. Sales are 60% cash and 40% credit with all accounts receivables collected in the month following the sale. Cost of goods sold is 80% of sales and ending inventory is maintained at $65,000 plus 10% of the following month's cost of goods sold. All inventory purchases are paid 28% in the month of purchase and 72% in the following month. What are the budgeted cash payments in June to account for the inventory purchases at Cave Hardware?

A) $168,000 B) $360,000 C) $159,200 D) $327,200

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