On March 31, Streuling Enterprises, a merchandising firm, had an inventory of 38,000 units, and it had accounts receivable totaling $85,000. Sales, in units, have been budgeted as follows for the next four months:

April

60,000

May

75,000

June

90,000

July

81,000

Streuling's board of directors has established a policy to commence in April that the inventory at the end of each month should contain 40% of the units required for the following month's budgeted sales.

The selling price is $2 per unit. One-third of sales are paid for by customers in the month of the sale; the balance is collected in the following month.

Required: MUST SHOW ALL CALCULATIONS

a) make a merchandise purchases budget showing how many units should be purchased for each of the months April, May, and June.