On July 1, MTC Wholesalers had a cash balance of $350,000 and accounts payable (related to inventory purchases) of $198,000. Actual sales for May and June, and budgeted sales for July, August, September, and October are: Month Actual Sales Month Budgeted Sales May $300,000 July $ 180,000 June 320,000 August 160,000 September 200,000 October 240,000 All sales are on credit with 75 percent collected during the month of sale, 20 percent collected during the next month, and 5 percent collected during the second month following the month of sale. Cost of goods sold averages 70 percent 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 $56,000 each month and are paid during the month incurred. Required Prepare purchases and cash budgets for July, August, and September. Do not use a negative sign with your answers. MTC Wholesalers Purchases Budget For the Months of July, August, and September July August September Inventory required, current sales Answer Answer Answer Desired ending inventory Answer Answer Answer Total inventory needs Answer Answer Answer Less beginning inventory Answer Answer Answer Purchases Answer Answer Answer Do not use a negative sign with your answers. MTC Wholesalers Cash Budget For the Months of July, August, and September July August September Cash balance, beginning Answer Answer Answer Cash receipts Current month's sales Answer Answer Answer Previous month's sales Answer Answer Answer Sales two months prior Answer Answer Answer Total receipts Answer Answer Answer Cash available Answer Answer Answer Cash disbursements: Purchases Answer Answer Answer Operating costs Answer Answer Answer Total disbursements Answer Answer Answer Cash balance, ending Answer Answer Answer