Purchases and Cash Budgets On July 1, ABC Wholesalers had a cash balance of $87,500 and accounts payable of $49,500. Actual sales for May and June, and budgeted sales for July, August, September, and October are:

Month	Actual Sales
May	$75000
June	80,000

Month	Budgeted Sales
July	$45,000
August	40,000
September	50,000
October	60,000

All sales are on credit with 75 percent collected during the month of sale, 20 percent collected during the next month, and 5 percent collected during the second month following the month of sale. Cost of goods sold averages 70 percent of sales revenue. Ending inventory is one-half of the next month's predicted cost of sales. The other half of the merchandise is acquired during the month of sale. All purchases are paid for in the month after purchase. Operating costs are estimated at $14,000 each month and are paid during the month incurred.

Required Prepare purchases and cash budgets for July, August, and September.

Do not use a negative sign with your answers.

ABC Wholesalers Purchases Budget For Month of July, August, and September
Months	July	August	September
Inventory required, current sales	$answer	$answer	$answer
Desired ending inventory	Answer	Answer	Answer
Total inventory needs	Answer	Answer	Answer
Less beginning inventory	Answer	Answer	Answer
Purchases	$answer	$answer	$answer

Do not use a negative sign with your answers.

ABC Wholesalers Cash Budget For Month of July, August, and September
Months	July	August	September
Cash balance, beginning	$answer	$answer	$answer
(Cash Receipts start here) Current month's sales	Answer	Answer	Answer
Previous month's sales	Answer	Answer	Answer
Sales two months prior Total receipts	Answer Answer	Answer Answer	Answer Answer
Cash available	Answer	Answer	Answer
(Cash disbursements start here) Purchases	Answer	Answer	Answer

Operating costs	Answer	Answer	Answer
Total disbursements	Answer	Answer	Answer
Cash balance, ending	$answer	$answer	$answer