Carmen is a retailer of scrapbooking products. The sales forecast for the coming months is:

	Revenues
April	$	250,000
May	$	270,000
June	$	297,000
July	$	345,000
August	$	354,000

Carmens sales are 70% cash and 30% store credit. The credit sales are collected 60% in the month of sale, the remainder the following month. Accounts receivable on April 1 are $39,000. Carmens cost of sales averages 70% of revenues. The inventory policy is to carry 30% of next months sales needs. April 1 inventory will be as expected under the policy. Carmen pays for purchases 20% in the month of purchase and 80% the following month. Accounts payable on April 1 is $131,000. a. Prepare a purchases budget for as many months as is possible. b. Prepare a cash payments budget for April through July.

c. Prepare a cash receipts budget for April through July. (Do not round intermediate calculations.)

April May June July August Revenues $ 250,000 $ 270,000 $ 297,000 $ 345,000 $ 354,000 Carmen's sales are 70% cash and 30% store credit. The credit sales are collected 60% in the month of sale, the remainder the following month. Accounts receivable on April 1 are $39,000. Carmen's cost of sales averages 70% 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 20% in the month of purchase and 80% the following month. Accounts payable on April 1 is $131,000. a. Prepare a purchases budget for as many months as is possible. April May June July A % % % % Sales Cost of Sales Percentage Cost of Sales Ending Inv Beginning Inv Purchases b. Prepare a cash payments budget for April through July. April May June July From This Month From Last Month Cash Payments S 0 $ 0 $ $ 0 $ 0 c. Prepare a cash receipts budget for April through July. (Do not round intermediate calculations.) April May June July Cash Sales Collected in the Month of Sale Collected the following Month Cash Collected $ 0 $ 0 0 $ 0 $ $ 0