Justin Bieber Canine Solutions sells designer dog collars. The company has shared its sales budget for the second quarter of the coming year

Budgeted Sales

April $ 200,000

May $ 196.000

Justin Biober Canine Solution's cost of goods sold is 80% or sales and the desired ending inventory balance each month is 20% of tne next months cost of goods sold. justin bieber canine solutions makes all purchases on account and typically pays 60% of purchases in the month of purchase and the remaining 40% in the next month. The balance in accounts payable at december 31st, year 1 was $36,000

Show all calculations for credit.

a. Prepare an inventory purchases budget for April and May.

b. Prepare the schedule of cash payments for inventory for May.