Refer to 4-19. Company policy is to plan to end each month with an ending inventory equal to 20 percent of the next month’s projected sales. Jaime’s pays $8 for each hat that it purchases. Jaime and his supplier have an arrangement that allows Jaime’s Hat Shop to pay for each purchase 60 days after the purchase.

Required: Prepare a purchases budget for the third quarter of this year for Jaime’s Hat Shop. lp85