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

	Revenues
April	$	179,000
May	$	205,000
June	$	217,000
July	$	247,000
August	$	232,000

Youngs cost of goods sold averages 60% of revenues. The inventory policy is to carry 20% of next months cost of goods sold (cost of sales). April 1 inventory will be as expected under the policy. Young pays for purchases 80% in the month of purchase and 20% the following month. Accounts payable on April 1 is $24,400.

a. Prepare a purchases budget for April through July and a partial August (through Cost of Sales).

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