XYZ Company is a retailer of upscale widget products. The sales forecast for the coming months is:

Revenues

April 250,000

May 275,000

June 300,000

July 350,000

August 375,000

XYZ Company's sales are 60% cash and 40% store credit.

The credit sales are 70% in the month of sale, and the remainder is collected in the following month.

Accounts receivable on April 1 are $50,000

XYZ Company's cost of sales are averages 60% of revenues.

The inventory policy is to carry 25% of next month's sales needs. April 1 inventory will be as expected under the policy.

XYZ Company pays for purchases 56% in the month of purchase and the remaining amount in the following month.

Accounts Payable on April 1 is $90,000

a. Prepare a purchases budget for as many months as is possible.

b. Prepare a cash payments budget for April through June.

c. Prepare a cash receipts budget for April through June.