20 Test 2 it Format Tools Add-ons Help - Normal text - Calibri All changes saved in Drive 11 - BIVA 004 EE E EEEE 6. Dawson Lighting sells lamps and had cost of goods sold during the month of January of $420,000. The company projects a 4 percent increase in cost of goods sold during February. The inventory balance as of January 31 is $32,000, and the desired ending inventory balance for the end of February is $ 38,000. Dawson Lighting pays cash to settle 60 percent of its purchases on account during the month of purchase and pays the remaining 40 percent in the month following the purchase. The accounts payable balance as of January 31 was $169,600. Required: a. Prepare the purchases budget and the cash payments budget for inventory purchases for February in a format similar to below. February Inventory Purchases Budget Budgeted cost of goods sold Desired ending inventory Total inventory needed Beginning inventory Required purchases | Schedule of cash payments Payment on current month purchases Payment on prior month purchases Total budgeted cash payments