Management Accounting The Purchases Budget The "Alex. Branch of the Friends Co." Case The Alex. branch of the "Friends Co." prepared the following sales budget: June: L.E. 68,000, July: L.E. 72,000, August: L.E. 74,000, September: L.E. 76,000, October: L.E. 78,000. The cost of goods sold percentage is 65%, and the desired inventory level is 25% of next month's sales. Purchases are paid for in the fol- lowing manner: 10% in the month of purchase, 50% in the month after pur- chase, and 40% two months after purchase. Required: Prepare a purchases budget and a schedule of cash disbursements for purchases for July through September if it is known that this branch is planning to start its pure commercial activity at the beginning of June