Young is a retailer of assorted baby products. The sales forecast for the coming months is:

	Revenues
April	$	181,000
May	$	209,000
June	$	217,000
July	$	249,000
August	$	233,000

Youngs cost of sales averages 80% of revenues. The inventory policy is to carry 20% of next months sales needs. April 1 inventory will be as expected under the policy. Young pays for purchases 70% in the month of purchase and 30% the following month. Accounts payable on April 1 is $24,400. a. Prepare a purchases budget for as many months as is possible.

	April		May		June		July		August
Sales
x 80%		%		%		%		%		%
Cost of Sales
Ending Inv
Beginning Inv
Purchases

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

	April	May	June	July
From This Month
From Last Month
Cash Payments