Ending inventory is budgeted to be 30% of the expected unit sales for the following month. Expected sales in units follow:

January	4,000
February	4,200
March	4,500
April	4,800
May	5,000
June	5,200

There were 500 units in inventory on December 31. Units are purchased for $10 each. All purchases are on credit. 40% of purchases are paid for in the month of the purchase and the remaining 60% in the following month.

Units are sold for $30 each. 30% of the sales are for cash and 70% are on credit. Of the credit sales, 20% are collected in the month of the sale and 80% in the following month.

1.What is the budgeted purchases in dollars for March?

2.What is the budgeted gross profit for March?

3.What is the total cash disbursements in March (for purposes made in all months)?

4.What is the budgeted Accounts Payable balance on March 31?

5.What are the projected total cash receipts in March (for cash and credit sales made in all months)?

6.What is the projected Accounts Receivable balance on March 31

7. What is the projected Merchandise Inventory balance on March 31?