Dodge Ltd Is in the Process of Preparing Its Budget for for Next

Dodge Ltd. is in the process of preparing its budget for next year. Cost of goods sold has been estimated at 60 per cent of sales. Merchandise purchases are to be made during the month preceding the month of the sales. Dodge pays 60 per cent in the month of purchase, and 40 per cent in the month following. Wages are estimated at 20 per cent of sales and are paid during the month of sale. Other operating costs amounting to 10 per cent of sales are to be paid in the month following the sale. The accounts payable balance on June 30 was £20,000. $$\begin{array} { l r } \text { Month } & \text { Sales } \\\text { June } & £ 170,000 \\\text { July } & 200,000 \\\text { August } & 120,000 \\\text { September } & 150,000 \\\text { October } & 160,000 \\\text { November } & 100,000\end{array}$$

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