Kentron Products wishes to purchase goods in one month for sale in the next. On March 31, the company has 4.000 digital tape players in stock, although sales for the next month (April) are estimated to total 4,300 players. Sales for May are expected to equal 3,500 players, and June sales are expected to total 3,700 players.

Tape players are purchased at a wholesale price of $290. The supplier has a financing arrangement whereby Kentron pays 60 percent of the purchase price in the month when the players are delivered and 40 percent in the following month. Five thousand players were purchased in March.

a. Estimate purchases (in units) for April and May.

b. Estimate cash required to make purchases in April and May.