Carmen is a retaller of scrapbooking products. The sales forecast for the coming months is: April May Revenues $255,000 $274,000 June $ 293,000 July August $ 343,000 $ 355,000 Carmen's sales are 60% cash and 40% store credit. The credit sales are collected 70% in the month of sale, the remainder the following month. Accounts receivable on April 1 are $36,000. 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 40% in the month of purchase and 60% the following month. Accounts payable on April 1 is $131,000. a. Prepare a purchases budget for as many months as is possible. Sales Cost of Sales Percentage Cost of Sales Ending Inv Beginning Invi Purchases April % May % June % July % August 1%