Peyton Department Store prepares budgets quarterly. The following information is available for use in planning the second quarter budgets for 2014.

PEYTON DEPARTMENT STORE

Balance Sheet

March 31, 2014AssetsLiabilities and Stockholders' EquityCash$3,000

Accounts payable$26,000

Accounts receivable 25,000

Dividends payable 17,000

Inventory 30,000

Rent payable 2,000

Prepaid Insurance 2,000

Stockholders' equity 40,000

Fixtures 25,000

Total assets $85,000

Total liabilities and equity $85,000

Actual and forecasted sales for selected months in 2014 are as follows:

Month Sales Revenue

January $ 60,000

February 50,000

March 40,000

April 50,000

May 60,000

June 70,000

July 90,000

August 80,000

Monthly operating expenses are as follows:

Wages and salaries$ 25,000

Depreciation 100

Utilities 1,000

Rent 2,000

Cash dividends of $17,000 are declared during the third month of each quarter and are paid during the first month of the following quarter. Operating expenses, except insurance, rent, and depreciation are paid as incurred. Rent is paid during the following month. The prepaid insurance is for five more months. Cost of goods sold is equal to 50 percent of sales. Ending inventories are sufficient for 120 percent of the next month's sales. Purchases during any given month are paid in full during the following month. All sales are on account, with 50 percent collected during the month of sale, 40 percent during the next month, and 10 percent during the month thereafter. Money can be borrowed and repaid in multiples of $1,000 at an interest rate of 12 percent per year. The company desires a minimum cash balance of $3,000 on the first of each month. At the time the principal is repaid, interest is paid on the portion of principal that is repaid. All borrowing is at the beginning of the month, and all repayment is at the end of the month. Money is never repaid at the end of the month it is borrowed.

Put together a purchases budget for each month of the second quarter ending June 30, 2014.

Put together a cash receipts schedule for each month of the second quarter ending June 30, 2014. Do not include borrowings.