Heisler Company sells its smartphone worldwide. Heisler expects to sell 4,600 smartphones for $160 each in January and 4,000 smartphones for $225 each in February. All sales are cash only. Heisler expects cost of goods sold to average 60% of sales revenue and the company expects to sell 4,300 smartphones in March for $300 each. Heisler's target ending inventory is $10,000 plus 50% of the next month's cost of goods sold.
1. Prepare the sales budget for January and February.
2. Prepare Heisler's inventory, purchases, and cost of goods sold budget for January and February.