2. Prepare a purchases budget for January through March, and the first quarter in total. Assume that the company only sells one product that can be purchased at $35.00 per unit. The market for this product is very competitive and customers highly value service such as quality and on time delivery of the product. Also assume that currently it is company policy that ending inventory should equal 45% of next month's projected sales. All costs are paid in the current month except inventory purchases, which are paid in the month following the purchase (i.e. January purchases are paid in February). Budgeted sales in units would be: December of the previous year January February March 70,000 80,000 60,000 80,000 100,000 April Your Company Name Purchases Budget - Merchandising Company For the first quarter ended March 2020 December 70,000 January 80,000 Quarter 1 February 60,000 March 80,000 Total 220,000 Budgeted unit Sales Add desired ending merchandise inventory Total needs Less beginning merchandise inventory Required purchases S Unit product cost Cost of inventory purchases Your Company Name Budgeted cash disbursements for merchandise purchases: For the first quarter ended March 2020 Quarter 1 January February March Total Beginning accounts payable (December) January purchases February purchases March purchases Total cash disbursements for merchandise purchases - $ - $ Purchases Budget (Merchandising) % of next month's sales in ending purchases inventory Unit product cost % of purchases paid in the month of the purchase % of purchases paid in the 1st month after the purchase