Carter Roberts Inc. sells household equipment to

contractors within Manitoba. On June ${30}^{th},$ the

company had inventories of $$462,500$ at a cost of

$$25.$ The following budget assumptions are available

for the third quarter of the year:

Each month's sales are billed on the last day of

the month.

Customers are allowed $3\%$ discount if payment is

made within $30$ days after the billing date.

Receivables are recorded in the accounts at their

gross amounts $($not net of discounts$).$

The billings are collected as follows: $75\%$ within

the discount period, $15\%$ percent by the end of

the month and $8\%$ by the end of the following

month. $2\%$ is uncollectible.

Purchase data are as follows:

For both purchases of inventory merchandize and

selling, general, and administrative expenses,

$70\%$ is paid in the month purchased and the

remainder in the following month.

The number of units in each month's ending

inventory equals $90\%$ percent of the next

month's unit of sales.

Selling, general, and administrative expenses, of

which $$8,000$ is depreciation, equals $20\%$ of the

current month's sales.

Actual and projected sales are as follow:

Required:

Compute the following:

a$.$ Budgeted inventory purchases in dollars for July

b$.$ Budgeted inventory purchases in dollars for

August

c$.$ Budgeted cash collections during July

d$.$ Budgeted cash disbursements during August