Bateman Company is an electronic parts distributor with the following expected sales:

January ....................................................................$ 5,400,000

February .................................................................. 7,000,000

March ...................................................................... 6,400,000

April ........................................................................ 6,600,000

May ......................................................................... 7,000,000

June ......................................................................... 7,500,000

July .......................................................................... 6,900,000

August ..................................................................... 7,300,000

Bateman’s cost of goods sold averages 65 percent of sales. Seventy percent of parts are received by Bateman one month prior to sale while the remaining 30 percent are received in the month of sale. Historically, Bateman has paid 80 percent of its accounts payable one month after receipt of the purchased parts and the remaining 20 percent two months after receipt of the purchased part.

Required

A. Prepare a purchases budget, by month, for the second quarter.

B. Prepare a cash disbursements schedule, by month, for the second quarter.