On July 1, MTC Wholesalers had a cash balance of $262,500 and accounts payable of $148,500. Actual sales for May and June, and budgeted sales for July, August, September, and October are: Month Actual Sales Month Budgeted Sales May $225,000 July $ 135,000 June 240,000 August 120,000 September 150,000 October 180,000 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 $42,000 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 0 $Answer 0 $Answer 0 Desired ending inventory Answer 0 Answer 0 Answer 0 Total inventory needs Answer 0 Answer 0 Answer 0 Less beginning inventory Answer 0 Answer 0 Answer 0 Purchases $Answer 0 $Answer 0 $Answer 0 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 0 $Answer 0 $Answer 0 Cash receipts Current month's sales Answer 0 Answer 0 Answer 0 Previous month's sales Answer 0 Answer 0 Answer 0 Sales two months prior Answer 0 Answer 0 Answer 0 Total receipts Answer 0 Answer 0 Answer 0 Cash available Answer 0 Answer 0 Answer 0 Cash disbursements: Purchases Answer 0 Answer 0 Answer 0 Operating costs Answer 0 Answer 0 Answer 0 Total disbursements Answer 0 Answer 0 Answer 0 Cash balance, ending $Answer 0 $Answer 0 $Answer 0