Purchases and Cash BudgetsOn July $1,$ MTC Wholesalers had a cash balance of $$125,000$ and accounts payable of $$160,000$ related to Inventory purchases, and Inventory of $$78,000.$ Actual sales for May and June, and budgeted sales for July, August, September, and October areMonthSalesMonth$$250,000$ July$225,000$ AugustSeptemberBudgeted Sales$ $260,000240,000270,000275,000$All sales are on credit with $60\%$ collected during the month of sale, $30\%$ collected during the next month, and $10\%$ collected during the second month following the month of sale. Cost of goods sold averages $60\%$ of sales revenue. Ending inventory is one$-$predicted cost of sales. The other half of the merchandise is acquired during the month of sale. All purchases are pald for in the month after purchase. Operating costs are estimated at $$95,000$ each month and are pald during the month incurred.RequiredPrepare purchases and cash budgets for july, August, and September.Do not use a negative sign with your answers.