M22-19. Purchases Budget in Units and Dollars Thunder Road Guitars specializes in vintage, used, and rare guitars. Assume budgeted sales for the first six months of the year are as follows: Month Unit Sales Month Unit Sales January. ............ .0 15 April .. ... 18 February.................... 12 May............ ... 22 March .......... ... ... .... 16 June . ... 20 Beginning inventory for the year is 7 units. The budgeted inventory at the end of a month is 50% of units to be sold the following month. Purchase price per unit is $800. Required Prepare a purchases budget in units and dollars for each month, January through May. M22-20. Cash Budget Patrick's Retail Company is planning a cash budget for the next three months. Estimated sales revenue 1s as follows: Month Sales Revenue Month Sales Revenue January. ............... $250,000 March................. $400,000 February............... 350,000 APrl L 375,000 All sales are on credit; 75% is collected during the month of sale, and 25% is collected during the next month. Cost of goods sold is 70% of sales. Payments for merchandise sold are made in the month fol- lowing the month of sale. Operating expenses total $125,000 per month and are paid during the month incurred. The cash balance on February 1 is estimated to be $55,000. Required Prepare monthly cash budgets for February, March, and April