timated sales for July, August, September, and October will be $$270,000,$$$290,000,$$$280,000,$ and $$300,000,$ res sales are on credit and all credit sales are collected. Each month's credit sales are collected $45\%$ in the month of the month following the sale. All of the accounts receivable at June $30$ will be collected in July. r this quarter, each month's ending inventory must equal $20\%$ of the cost of next month's sales. The cost of goods les. The company pays for $30\%$ of its merchandise purchases in the month of the purchase and the remaining $70\%$ lowing the purchase. All of the accounts payable at June $30$ will be paid in July.

onthly selling and administrative expenses are always $$50,000.$ Each month $$5,000$ of this total amount is deprecia d the remaining $$45,000$ relates to expenses that are paid in the month they are incurred.

ne company does not plan to borrow money or pay or declare dividends during the quarter ended September $30.$ T pes not plan to issue any common stock or repurchase its own stock during the quarter ended September $30.$

red:

pare a schedule of expected cash collections for July, August, and September.

repare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchas er ended September $30.$

repare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. pare an income statement for the quarter ended September $30.$

pare a balance sheet as of September $30.$

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