Quagmire Inc. has prepared the follwing sales budget for the quarter of April, May and June: Sales Budget Total Sales in units Selling price per unit Sales revenue April 10000 x $60 5600000 May 13500 x $60 5810000 June 11500 xS60 S690000 35000 2100000 All of the sales are on credit. Quagmire collects from customers as follows: 40% of sales in the month of sale 35% 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 Cash receipts April 240000 262500 165000 S 667500 May 324000 210000 187500 $ 721500 June 276000 283500 150000 5 709500 Total 840000 756000 502500 $2098500 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 April 360000 48600 408600 (36000) 372600 May 486000 41400 527400 (48600) 478800 Total 1260000 32400 1292400 (36000) 1256400 June 414000 32400 Budgeted cost of goods sold plus desired ending inventory Total needs less beginning inventory Cost of purchases (41400) 405000