At March $31$ Streuling Enterprises, a merchandising firm, had an inventory of $38,750$ units, and it had accounts receivable totaling $$85,750.$ Sales, in units, have been budgeted as follows for the next four months:

April $60,600$

May $75,750$

June $90,900$

July $82,050$

Streuling's board of directors has established a policy to commence in April that the inventory at the end of each month should contain $40\%$ of the units required for the following month's budgeted sales. The selling price is $$3\mathrm{.}5$ per unit. One$-$third of sales are paid for by customers in the month of the sale, the balance is collected in the following month.

Required:

Prepare a merchandise purchases budget showing how many units should be purchased for each of the months April, May, and June.

Prepare a schedule of expected cash collections for each of the months April, May, and June.