Lakeside Components wishes to purchase parts in one month for sale in the next. On June 1, the company has 14,000 parts in stock, although sales for June are estimated to total 10,600 parts. Total sales of parts are expected to be 12,900 in July and 11,700 in August.

Parts are purchased at a wholesale price of $25. The supplier has a financing arrangement by which Lakeside Components pays 70 percent of the purchase price in the month when the parts are delivered and 30 percent in the following month. Lakeside purchased 13,000 parts in May.

Required:

a. Estimate purchases (in units) for June and July.

	June	July
Merchandise to be purchased			units

b. Estimate the cash required to make purchases in June and July.

Month of Payment	Total
June
July