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

	Revenues
April	$	253,000
May	$	268,000
June	$	294,000
July	$	341,000
August	$	357,000

Carmens sales are 70% cash and 30% store credit. The credit sales are collected 70% in the month of sale, the remainder the following month. Accounts receivable on April 1 are $35,000. Carmens cost of sales averages 65% 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 40% in the month of purchase and 60% the following month. Accounts payable on April 1 is $125,000. a. Prepare a purchases budget for as many months as is possible.

b. Prepare a cash payments budget for April through July. April May June July From This Month From Last Month Book Cash Payments rint Fences 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 Prev 1 of 1 11 Next 3,173 NOVI