Inflated Ego Company buys plain mylar balloons and prints different designs on them for various occasions. The plain balloons are imported from Taiwan, so a stock equal to the balloons needed for two months' sales should be kept on hand at all times.

Plain balloons cost $1.35 each and must be paid for in cash. There are 14,000 plain balloons in the company's stock. Sales estimates, based on contracts received, are as follows for the next six months:

a. Estimate purchases (in units) for January, February, and March.

b. Estimate cash required to make purchases in January, February, and March.

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January February March... April May..... 6,200 8,900 ... 6,600 .... 7,100 4,800 June.. 3,600