Sander Enterprises prepared the following sales budget: Month March April May June Budgeted Sales $7000 $12.000 $11,000 $18,000 The expected gross profit rate is 20% and the inventory at the end of February was $5000. Desired inventory levels at the end of the month are 30% of the next month's cost of goods sold. What are the total purchases budgeted for May? $7120 $8800 $10,480 $11,440 Hammond's Cookie Toppings makes payments on its inventory purchases as follows: 30% in the month of purchase, 65% in the following month, and 5% in the second month following purchase. Budgeted inventory purchases for June, July, and August are $$16,000, $19,000 and $22,000, respectively. What is the budgeted amount of cash payments to account for inventory in August at Hammond's Cookie Toppings? $6550 $19,750 $18,250 $2850