A factory is selling its product. The average purchase price is $10 per unit. The average sales price is $19.27 per unit.

The factory wants to keep an inventory level of 22% of next months expected sales. 31% of customers buy on credit.

Of these, 25% pay within the month of purchase and 75 % pay the following month.

The factory buys all units on credit and pays for 30% the same month and 70% the following month.

At the end of February, the factory had 200 units in inventory. During March, April, and May, they expects to sell 600, 700, and 800 units , respectively.

Produce a sales budget for April (including cash collections).

1. Sales revenue
2. Cash from this months sales:
3. Cash from last months sales:

Produce a purchases budget for April (including cash payments).

1. Desired ending inventory:
2. Purchases (# units):