Farley Company has budgeted sales revenues as follows:

June July August

Credit sales $150,000 $140,000 $100,000

Past experience indicates that 50% of the credit sales will be collected in the month of sale, 40% will be collected in the first month following sale and the remaining 10% will be collected in the second month following the month of sale. Purchases of inventory are all on credit and 45% are paid in the month of purchase and 55% in the month following purchase. Budgeted inventory purchases are:

June $200,000

July 350,000

August 105,000

Instructions

Prepare separate schedules for expected collections from customers and expected payments for purchases of inventory for July and August.