Arturo has budgeted the following total sales: Month Sales January $ 30,000 February $ 40,000 March $ 35,000 April $ 30,000 The company expects 80% of its sales to be on account (credit sales). Credit sales are collected as follows: 30% in the month of sale and 68% in the month following the sale, with the remainder being uncollectible and written off in the month following the sale. The gross profit margin is generally 40%. At the end of the month, Arturo maintains inventory equal to 30% of the following months expected cost of sales.

Required:

1. Calculate budgeted accounts receivable for the month of February.

2. Calculate budgeted cash inflows from collection of receivables for February.

3. Determine the amount of purchases in dollars for March