Sunshine Company produces gold medals that are awarded to winners of writing competitions all over the world. The sales budget for the second quarter of the year follows: May 36,000 Total 93,000 Unit Sales Price Sales April 15,000 $9 $135,000 June 42,000 $9 $378,000 $324,000 $837,000 Actual sales for February were 10,400 units and for March sales in units were 11,900. Predicted sales for July and August are 40,000 and 45,000 units respectively. All sales are on account. The firm collects 10% of accounts receivable in the month of the sale. 65% is collected the following month and 20% is collected in the second month after the sale. Sunshine requires a minimum cash balance of $15,000. Inventory amounting to 15% of the following month's sales must be on hand at all times. On March 30, the actual cash balance was $7,400. Inventory on that date was 3,400 units at a cost of $2 each. 1. Produce a properly formatted purchases budget for the appropriate budget period. 2. What is the purpose of the purchases budget