Part A Chwee Heng Company (CHC) has the following information: Month June July August September October Budgeted Sales $80,000 91,000 50,000 75,000 82,000 In addition, the cost of goods sold is equal to 65% of sales revenue and the desired inventory level is equal to 25% of next month's cost of cost of goods sold. Required: Prepare a purchases budget for July through September. Part B You have prepared the following sales budget: Month May June July August September Cash Sales Credit Sales $26,000 $78,000 25,000 70,000 28,000 75,000 14,000 82,000 22,000 77,000 (6 marks) Collections are 30% in the month of sale, 50% in the month following the sale, and 18% two months following the sale. The remaining 2% is expected to be uncollectible. Required: a. Prepare a schedule of cash collections for July through September. (6 marks) b. Discuss the pros and cons when employees build slacks (budget slacks) into a budget