Prepare of a Merchandise purchases budget.

In units the budgeted sales per quarter are 1st, 65000 units, 2nd 103200, 3rd 30000, 4th 54000 for 2020. Actual sales form prior year 4th quarter were 40000 units.Selling price is $12/unit and cost to purchse is $5/unit. ending inventory for a quarter should be 50% of the next quarters sales.40% of a quarters purchase is paid for in the quarter of purchase, the other 60% is paid for in the quarter following the quarter of purchase.

Prepare a Merchandise purchases budget.

				Sales Budget
		Quarter	1	2	3	4	Year
Budgeted Unit Sales (units/pairs)			65000	103200	30000	54000	252000
Selling Price Per Unit ($q12/unit)			$12	$12	$12	$12	$12
Total Budgeted Sales			$780,000	1238400	$360,000	$648,000	$3,026,400
	cost:	$5/pair	325000	516000	150000	270000	$1,261,000
							$1,765,400

Total cash collections

Quarter 1, Quarter 2 Quarter 3 Quarter 4. year

$ 530,400

$ 811,680

$ 971,040

$ 593,280

$ 2,906,400