[jpsider]

Sales are budgeted as $260,000 for November, $230,000 for December, $210,000 for January
The cost of goods sold are 80% of sales
The company purchases 50% of its merchandise in the month prior to the month of sale and 50% in the month of sale. Payments for merchandise is made in the month following the purchase
Statement of Financial Position
Oct. 31
Assets
Cash 28,000
Accts Rec 78,000
Inventory 104,000
Property,plant equip (net of 640,000 accum dep) 1,132,000
Total assets 1,342,000
Liabilities and stockholders equity
Accts payable 200,000
Common stock 800,000
Retained earnings 342,000
Total liab and stock equity 1,342,000

[Just Looking]

We won't do your homework for you. Please read this announcement.

https://www.askmehelpdesk.com/financ...-b-u-font.html

I will get you started. If you'd like to post again with your attempt at the problem, we can check it and tell you if you are on the right track.

Start with a spreadsheet showing the expected sales in each month. You know that COGS are 80% of sales, so you can calculate the COGS for the month. Your problem states 50% are purchased in the previous month and 50% in the month of sale. With this info, you can compute the purchases in December. Just take this one step at a time and please ask if you get confused, but it would help if you show your work. We can then see what is confusing you. Thanks.