Refer to E6.13 and E6.14. Assume each unit will cost $20 and Barcenilla desires an ending inventory equal to 10 percent of next month’s anticipated sales. Prepare the purchases budget for the first two months.

Data from E6.13

Barcenilla has a beginning accounts receivable balance of $140,000. Barcenilla expects sales to be $460,000; $500,000; and $520,000, respectively, for each month in the next quarter. Based on past experience, Barcenilla estimates that 65 percent of sales will be collected in the month of sale with the remaining amount collected in the month following the sale.

Data from E6.14

Assume Barcenilla sells its product for $100 each. Prepare a sales budget, by month, for next quarter.