Carmen is a retailer of scrapbooking products. The sales forecast for the coming months is: April Revenues $259,000 May $271,000 June $296,000 July August $341,000 $356,000 Carmen's sales are 80% cash and 20% store credit. The credit sales are collected 50% in the month of sale, the remainder the following month. Accounts receivable on April 1 are $41,000. Carmen's cost of sales averages 60% of revenues. The inventory policy is to carry 30% of next month's sales needs. April 1 inventory will be as expected under the policy. Carmen pays for purchases 30% in the month of purchase and 70% the following month. Accounts payable on April 1 is $132,000. a. Prepare a purchases budget for as many months as is possible. Sales Cost of Sales Percentage Cost of Sales Ending Inv Beginning Inv Purchases April % May % June % July % August %