QUESTION 2 Not complete Marked out of 45.00 Flagquestion Purchases and Cash Budgets On July 1, MTC Wholesalers had a cash balance of $350,000 and accounts payable of $198,000. Actual sales for May and June, and budgeted sales for july, August, September, and October are: Month Actual Sales Month Budgeted Sales May Junc 300,00July 180,000 160,000 200,000 240,000 320,000 October 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 S56,000 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. MTC Wholesalers Purchases Budget For the Months of July, August, and September September Inventory required, current sales Desired ending inventory Total inventary needs Less beginning inventory Purchases Do not use a negative sign with your answers. MTC Wholesaler:s Cash Budget For the Months of July, August, and September July September Cash balance, beginning Cash receipts Current month's sales Previous month's sales Sales two months prior Total receipts Cash available Cash disbursements: Purchases Operating costs Cash balance, ending Check