Fernandez Furniture Mart plans inventory levels (at cost) at the end of
each month as follows: May, $250,000; June, $220,000; July, $270,000; August,
$250,000.
Sales are expected to be: June, $440,000; July, $350,000; August, $400,000.
Cost of goods sold is 60 percent of sales.
Purchases in April were $250,000; in May, $180,000. A given month’s purchases
are paid as follows: 10 percent during that month; 80 percent the next
month; and the final 10 percent the next month.
Prepare budget schedules for June, July, and August for purchases and for
disbursements for purchases.