No need to follow exhibit format

Pinner hardware expects the following sales in units in 2019/2020 for one of their products: Jan 2020 40,000 Aug Se 40,000 Oct 46,000 Nov 55,0 Dec 2019 A8,000 56,000 Sales are 70% credit sales with the remainder cash, 50% of customers pay in the month following sale, 48% in the month following that (2 months from the sale) and 2% are uncollectable (bad debts). In 2019 the business has had a target for finished inventory of 25% of the following month's sales units. The units are purchased for $12 and sold for $30 each. Payment for purchases is made in the month following purchase. Ignore GST Required: 1. Prepare the sales budget for the quarter October December 2019 (showing each month and the total for the quarter) (see format p. 106 Exhibit 3.6). Include a schedule of expected cash collections. (7 marks) 2. Prepare the purchases budget for the quarter October - December 2019 (showing each month and the total for the quarter) (see format p.111 Exhibit 3.1) Include the expected payments for purchases. (7 marks)