Lo3 E22-28. Purchases and Cash Budgets On July 1, MTC Wholesalers had a cash balance of $125,000 and accounts payable of $160,000, and Inventory of $78,000. Actual sales for May and June, and budgeted sales for July, August, September, and October are mbridge Business Publishers Module 22 Operational Budgeting and Profit Planning All sales are on credit with 60% collected during the month of sale, 30% collected during the next month, and 10% collected during the second month following the month of sale. Cost of goods sold averages 60% of sales revenue. Ending inventory is one-half of the next month's predicted cost of sales. The other half of the merchandise is acquired during the month of sale. All purchases are paid for in the month after purchase. Operating costs are estimated at $95,000 each month and are paid during the month incurred. Required Prepare purchases and cash budgets for July, August, and September