1. The Cherokee Company buys stadium chairs for $140 and sells them for $260 each; the company has the following sales forecast: August 200 units, September 280 units and October 310 units. Ending inventory for each month should be 20% of the next months sales. The company had 36 units on hand on August 1st. What total dollar amount of purchases would appear in the companys purchases budget September?

2. A company decides to make all sales on account and experience shows that 40% of sales are collected in the month of the sale and 60% in the month after the sale; how many of the following budgets will be impacted by the decision? Balance sheet Income statement Sales Cash Purchases

3. At the beginning of January, the Great Lakes Company began when owners invested $180,000 and then during January the company had the following transactions: Purchased equipment for $2,000 on account Sold $10,000 of services to customers and sent a bill for that amount Purchased supplies for $500 Paid employee payroll of $5,500 Received a utility bill for $500; will be paid next month Paid dividends of $150 What is the company's net income for January?