Peak sales for Next, Inc., occur in December. The companys sales forecast is given below:

August September October November December January Budgeted sales $50,000 $40,000 $60,000 $30,000 $80,000 $20,000 Cash sales represent 40% 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.

Inventory purchases are paid in full in the month following the purchases. 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.