Kenneth Clark is one of Texas's premiere party planners. She purchases a variety of supplies, such as plastic tableware. stemware, and decorations, throughout the year. Kenneth has prepared the following purchases budget for the coming year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted purchases $300,000 $420,000 $435,000 $515,000 Historically, Kenneth has paid for 40% of her purchases in the quarter of purchase and 60% in the quarter following purchase. On December 31 of this year Kenneth had a $250,000 accounts payable balance.