Most sales are made on credit, usually 70% is paid upon receipt of the goods. 30% payment in the following month. Sales actual in April and sales budget in the next 4 months:

Month	$
April	400,000
May	500,000
June	700,000
July	900,000
August	600,000

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The inventory is purchased on credit. The cost of goods sold forthe company equals 60% of sales. The company pays 50% of thepurchase when the goods are received at the warehouse and paysit off in the following month. End-of-month inventories mustmeet the company's requirement of being equal to 25% of thecost of goods sold for the next month.

a. How much money the company may expect to bring in overall in June.b. Determine how much inventory the company should have on hand atthe end of May based on the allocated dollar amount. c. Calculate the quantity of goods that the business should buy in Juneand July (with assumption inventory beginning balance equal withprevious month ending balance). d. Determine how much cash will be paid to suppliers in month of Julyrelated with inventory purchases.