Young is a retailer of assorted baby products. The sales forecast for the coming months is: April Revenues $179,000 May $206,000 June $224,000 July $249,000 August $233,000 Young's cost of sales averages 70% of revenues. The inventory policy is to carry 20% of next month's sales needs. April 1 inventory will be as expected under the policy. Young pays for purchases 60% in the month of purchase and 40% the following month. Accounts payable on April 1 is $26,400. a. Prepare a purchases budget for as many months as is possible. April May June July August Sales $ 179,000 $ 206,000 $ 224,000 $ 249,000 233,000 Cost of Sales Percentage 70% 70% 70 % 70% 70 % Cost of Sales 125,300 144,200 156,800 174,300 163,100 Ending Inv 41,200 44,800 49,800 46,600 Beginning Inv 26,400 41,200 44,800 49,800 Purchases b. Prepare a cash payments budget for April through July April May June July From This Month From Last Month Cash Payments $ 0 S 0 $ 0 $ 0