Pomme Company sells phone covers for mobile phones. $On$ April $30,$ they had $an$ inventory $of35,000$ units. Budgeted sales $in$ units are:

May

$60,000$

June

$70,000$

July

$90,000$

August

$81,000$

They want inventory $on$ hand $at$ the end $of$ the month $tobe40\%of$ the units required for the following month's budgeted sales. The selling price $is$ $$5$ per unit. All sales are $on$ account; $60\%of$ sales are paid for $by$ customers $in$ the month $of$ the sale, $35\%in$ the month following the sale and $5\%$ are never collected. $NB$: $Its$ important $to$ show your work and calculations.

How much merchandise should $be$ purchased for May?

What are expected cash collections for June?