Quagmire Inc. has prepared the following sales budget for the quarter of April, May and June: Sales Budget April 12500 x $60 S750000 Total Sales in units Selling price per unit Sales revenue May 16000 x $60 5960000 June 14000 x S60 5840000 42500 $2550000 All of the sales are on credit. Quagmire collects from customers as follows: 50% of sales in the month of sale 25% in the month following the sale, and 25% in the second month following the sale Cash receipts budget Collect from current sales Collect from last month Collect from 2 mos. Prior April 375000 217500 202500 S 795000 May 480000 187500 217500 $ 885000 June 420000 240000 187500 5 847500 Total 1275000 645000 607500 $ 2527500 receipts Quagmire expects cost of goods sold to be 60% of sales. They keep 10% of next months expected cost of goods sold in ending inventory. Below are budgeted purchases of inventory. All purchases are paid for in the SAME month as the purchase Purchases Budget Budgeted cost of goods sold plus desired ending inventory Total needs less beginning inventory Cost of purchases April 450000 57600 507600 (45000) 462600 May 576000 50400 626400 (57600 568800 June 504000 41400 545400 (50400) 495000 Total 1530000 41400 1571400 (45000) 1526400