a) Macintosh Company is a retailer that sells phone covers. At January 31, they had an inventory of 1,500 covers. Budgeted sales in units are 9,000 for February and 12,000 for March.

They want inventory on hand at the end of the month to be 20% of the units required for the following month's budgeted sales. How much merchandise should be purchased for February?

b) At May 1, the beginning cash balance for Jonathan Company is $20,000. For May, budgeted cash receipts are $155,000 and budgeted cash disbursements total $170,000. Prepare the cash budget for June. If they would like to maintain a cash balance of $15,000 at the end of any given month, what should they do?