BLO PROBLEM 4 (10 pints) The sales budget of Hickory Company for the third quarter of 2018 is as follows: July $96,000 August $72,000 September $108,000 Sales Sales are 20% cash , 80 % credit. Cost of goods sold is 70% of total sales. Desired ending inventory for each month is equal to 25% of cost of goods sold for the following mo Collections on credit sales are as follows: 50% in the month of sale 30% in the month following sale 15% in the second month following sale 5% uncollectible July 1 inventory is $16,000. Expected sales for October are $84,000. Payments for inventory are 70% in the month following purchase and 30% two months followin. Prepare the purchas es budget for July, August, and September July are $150,000: po all accounts recei oo ding inventory is ntory purchases are