Hello. I am having a heck of a time with this question: Noskey Corporation has budgeted sales amounts of $320,000 in June, $460,000 in July and $240,000 in August. Purchases of inventory are equal to the next month's cost of Goods Sold. The cost of goods sold is 30 % of the selling price. All purchases of inventory are on account; 25% are paid in the month of purchase, and the remainder is paid in the month following the purchase. What is Noskey Corporation's budgeted total cash payments in July for inventory purchases?

key: Purchases of inventory are equal to the next month's cost of Goods Sold (Next month of July means August selling price,) so 30% x $240000 = $72000.

Key: 25% are paid in the month of purchase, and the remainder is paid in the month following the purchase. 25% x $72000 = $18000.

key: total cash payments in July for inventory purchases? Answer: $18000.

Hope this Help.. not really sure if this is correct, but seems like it is. HEHEH