1.Purchases Budget in Units and Dollars Budgeted sales of The Music Shop for the first six months of 2010 are as follows:

Month	Unit Sales	Month	Unit Sales
January	150,000	April	200,000
February	180,000	May	190,000
March	210,000	June	220,000

Beginning inventory for 2010 is 60,000 units. The budgeted inventory at the end of a month is 40 percent of units to be sold the following month. Purchase price per unit is $7. Prepare a purchases budget in units and dollars for each month, January through May.

The Music Shop Purchases Budget January - May, 2010
	January	February	March	April	May
Purchase units:
Purchase dollars:

2.Cash Budget Wilson's Retail Company is planning a cash budget for the next three months. Estimated sales revenue is as follows:

Month	Sales Revenue	Month	Sales Revenue
January	$300,000	March	$200,000
February	205,000	April	190,000

All sales are on credit; 60 percent is collected during the month of sale, and 40 percent is collected during the next month. Cost of goods sold is 70 percent of sales. Payments for merchandise sold are made in the month following the month of sale. Operating expenses total $44,000 per month and are paid during the month incurred. The cash balance on February 1 is estimated to be $40,000. Prepare monthly cash budgets for February, March, and April.

Use negative signs only with beginning and ending cash balances, when appropriate. Do not use negative signs with disbursement answers.

Wilson's Retail Company Cash Budgets February, March, and April
	February	March	April
Cash balance, beginning
Total Cash receipts
Cash available
Total disbursements
Cash balance, ending