A client gave her CPA the data listed below.

	July	August	September
Budgeted sales	$272,000	$280,000	$265,000
Accounts receivable, beginning balance	$83,000
Accounts Payable beginning balance	$249,000
Sales collected in the month sales are made	75%
Sales collected in the month after sales are made	25%

Cost of goods Sold is 80% of the current month's sales. The company budgets for ending finished goods inventory that is 45% of the following month's Cost of Goods Sold.

Prepare a Schedule of Expected Cash Collections and a Merchandise Purchases Budget for July and August.