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 are $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.