. Peak sales for Home Depot Inc. occur in December. The companys sales forecast is given below:

August September October November December January

• Budgeted sales $40,000 $60,000 $50,000 $30,000 $90,000 $30,000

• Cash sales represent 60% of total sales. From past experience, the company has learned that 70% of a months credit sales is collected in the month following the sale, and that the remaining 30% is collected in the second month following the sale.
• The average gross profit margin on sales is 40%.
• The policy is to acquire enough inventory each month to equal the following months expected cost of goods sold.
• All purchases are paid for in the month following purchase.

Required: Prepare, for the fourth quarter: (10 pts.)

(1) Sales Budget;

(2) Cash Collections from Customers Schedule;

(3) Purchases Budget; and

(4) Disbursements for Purchases Schedule

[Use the Master Budget template}