Purchases and Cash Budgets On July 1, MTC Wholesalers had a cash balance of $245,000 and accounts payable (related to inventory purchases) of $138,600. Actual sales for May and June, and budgeted sales for July, August, September, and October are: 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 $39,200 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. Do not use a negative sign with your answers