Revenues April $252,000 May $268,000 June July August $297,000 $344,000 $ 358,000 Check my work Carmen's sales are 70% cash and 30% store credit. The credit sales are collected 50% in the month of sale, the remainder the following month. Accounts receivable on April 1 are $38,000. Carmen's cost of sales averages 65% of revenues. The inventory policy is to carry 40% of next month's sales needs. April 1 inventory will be as expected under the policy. Carmen pays for purchases 40% in the month of purchase and 60% the following month. Accounts payable on April 1 is $134,000. a. Prepare a purchases budget for as many months as is possible. April Sales $ 252,000 Cost of Sales Percentage: 70 % Cost of Sales Ending Inv Beginning Inv Purchases May June July % % August