Ivanhoe Products, a rapidly growing distributor of home gardening equipment, is formulating its plans for the coming year. George Robinson, the firm's marketing director, has completed the following sales forecast. Month Sales Month Sales January $900,000 July $1.250,000 February $1,100,000 August $1,500,000 March $900,000 September April $1,600.000 $1,600,000 $1,200,000 October May $850,000 November $1,500,000 June $950,000 December $1,700,000 Donald Martin, an accountant in the Planning and Budgeting Department is responsible for preparing the cash flow projection. He has gathered the following information All sales are made on credit Ivanhoe's excellent record in accounts receivable collection is expected to continue with 30% of billings collected in the month of sale, 60% of billings collected in the month after sale and the remaining 10% collected two months after the sale Cost of goods sold, Ivanhoe's largest expense, is estimated to equal 45% of sales dollars. Forty percent of inventory is purchased one month prior to sale and 60% during the month of sale. For example in April 60% of April cost of goods sold is purchased and 40% of May cost of goods sold is purchased. All purchases are made on account. Historically, 75% of accounts payable have been paid during the month of purchase and the remaining 25% in the month following purchase. Hourly wages and fringe benefits, estimated at 30% of the current months sales, are paid in the month incurred General and administrative expenses are projected to be $1.428.000 for the year. A breakdown of the expenses follows. All expenditures are paid monthly throughout the year with the exception of property taxes, which are paid in four equal installments at the end of each quarter. Salaries and fringe benefits $ 309.000 369.000 Advertising Property taxes 80,000 Insurance 192,000 Utilities 132,000 Depreciation 346,000 Total $ 1.428,000 Operating income for the first quarter of the coming year is projected to be $320,000. Ivanhoe is subject to a 40% tax rate. The company pays 100% of its estimated taxes in the month following the end of each quarter. Ivanhoe maintains a minimum cash balance of $50,000. If the cash balance is less than $50,000 at the end of the month, the company borrows against its 12% line of credit in order to maintain the balance. All borrowings are made at the beginning of the month, and all repayments are made at the end of the month (in increments of $1,000). Accrued interest is paid in full with each principal repayment. The projected cash balance on April 1 is $50,000. Prepare the purchases budget for the second quarter (Round answers to decimal places. es. 5.275. Enter answers in necessary fields only. Leave other fields blank Do not enter Purchases Budget April May June Total Purchase April COGS $ May COGS June COGS July COGS Totals $