also find out inventory purchase budget

The Terranova Company has prepared its first two budgets for the master budget for the quarter ending June 30, 2020. (See Solution, as needed.) Some additional facts: The company's balance sheet as of September 30, 2020 shows: Cash $ 8,000 Accounts Receivable 20,000 Inventory 36,000 Buildings and Equipment (net) 120,000 Accounts Payable 21,750 Common Stock 150,000 Retained Earnings 12,250 As a retailer, Terranova buys inventory from a supplier. The company's gross margin is 40% Each month's ending inventory must equal 80% of the following month's budgeted cost of goods sold Payments to the company's supplier are made as follows: o 50% is paid in the month of purchase. 50% is paid in the month after the purchase. The accounts payable at September 31* are as a result of purchases made in September, 2020. *Required: 1) Prepare an Inventory Purchases Budget for Terranova for the quarter ending December 31, 2020. Show activity by month and in total. (Hint: a quarter = 3 months.) 2) Complete a Schedule of Expected Cash Disbursements for Inventory Purchases for the quarter ending December 31, 2020. Show activity by month and in total The Terranova Company has prepared its first two budgets for the master budget for the quarter ending June 30, 2020. (See Solution, as needed.) Some additional facts: The company's balance sheet as of September 30, 2020 shows: Cash $ 8,000 Accounts Receivable 20,000 Inventory 36,000 Buildings and Equipment (net) 120,000 Accounts Payable 21,750 Common Stock 150,000 Retained Earnings 12,250 As a retailer, Terranova buys inventory from a supplier. The company's gross margin is 40% Each month's ending inventory must equal 80% of the following month's budgeted cost of goods sold Payments to the company's supplier are made as follows: o 50% is paid in the month of purchase. 50% is paid in the month after the purchase. The accounts payable at September 31* are as a result of purchases made in September, 2020. *Required: 1) Prepare an Inventory Purchases Budget for Terranova for the quarter ending December 31, 2020. Show activity by month and in total. (Hint: a quarter = 3 months.) 2) Complete a Schedule of Expected Cash Disbursements for Inventory Purchases for the quarter ending December 31, 2020. Show activity by month and in total