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On July 1, MTC Wholesalers had a cash balance of $175,000 and accounts payable of $99,000. Actual sales for May and June, and budgeted sales

On July 1, MTC Wholesalers had a cash balance of $175,000 and accounts payable of $99,000. Actual sales for May and June, and budgeted sales for July, August, September, and October are:

MonthActual SalesMonthBudgeted Sales
May$150,000July$ 90,000
June160,000August80,000
September100,000
October120,000

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 $28,000 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
JulyAugustSeptember
Inventory required, current sales$Answer$Answer$Answer
Desired ending inventoryAnswerAnswerAnswer
Total inventory needsAnswerAnswerAnswer
Less beginning inventoryAnswerAnswerAnswer
Purchases$Answer$Answer$Answer

Do not use a negative sign with your answers.

MTC Wholesalers
Cash Budget
For the Months of July, August, and September
JulyAugustSeptember
Cash balance, beginning$Answer$Answer$Answer
Cash receipts
Current month's salesAnswerAnswerAnswer
Previous month's salesAnswerAnswerAnswer
Sales two months priorAnswerAnswerAnswer
Total receiptsAnswerAnswerAnswer
Cash availableAnswerAnswerAnswer
Cash disbursements:
PurchasesAnswerAnswerAnswer
Operating costsAnswer

AnswerAnswer
Total disbursementsAnswer

AnswerAnswer
Cash balance, ending$Answer$Answer$Answer

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