7

Young Incorporated sells denim jeans. The sales forecast (units) for the coming months is: Each pair of jeans has a cost of $14. The ending inventory policy is 30% of next month's sales needs. April 1 inventory will be as expected under the policy. Young pays for purchases 80% in the month of purchase and 20% the following month. Accounts payable on April 1 is $380. a. Prepare a merchandise purchases budget for the quarter ending June 30 . Note: Deductible values must be indicated with a minus sign. b. Prepare a cash payments budget for the quarter ending June 30 . Note: Round amounts to the nearest whole dollar