Carmen is a retaller of scrapbooking products. The sales forecast for the coming months is: April Hay June July August Revo $250,000 $275,000 $ 300,000 $350,000 $350,000 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 $32,000. Carmen's cost of sales averages 65% of revenues. The inventory policy is to carry 40% 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 $125,000. a. Prepare a purchases budget for as many months as is possible. Sales D April Cost of Sales Percentage Cost of Sales Ending inv Beginning inv Purchases % May June % July August % %