On March 31, Franklin Enterprises, a merchandising firm, had an inventory of 40,000 units, and it had accounts receivable totaling $35,000. Sales, in units, have been budgeted as follows for the next four months:

April	50,000
May	70,000
June	80,000
July	90,000

Franklin's board of directors has established a policy to commence in April that the inventory at the end of each month should contain 30% of the units required for the following month's budgeted sales. The selling price is $3 per unit. 40% of sales are paid for by customers in the month of the sale; the balance is collected in the following month. Required: PLEASE SHOW ALL OF YOUR CALCULATIONS FOR FULL MARKS a) Prepare a merchandise purchases budget showing how many units should be purchased for each of the months April, May, and June. The Budget needs to be properly labeled for full marks.

b)Prepare a schedule of expected cash collections for each of the months April, May, and June. The Schedule needs to be properly labeled for full marks.