The following information is available for Laurel Company, a wholesale company:

Expected sales volume:

October . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,200 units

November . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,700 units

December . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,100 units

Selling price per unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $45

Accounts receivable balance, October 1 . . . . . . . . . . . . . . . . . . . . . . . . . .$55,000

Desired ending inventory, December 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,800 units

Beginning inventory, October 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000 units

Additional information:

a. Each month 75% of sales is collected by month-end; the remaining 25% is collected in the following month.

b. The desired inventory every month is 30% of the next month’s sales.

Required:

1. Prepare sales budgets for October, November, and December (in dollars).

2. Prepare cash collection budgets for October, November, and December (in dollars).

Assume that all sales are on credit.

3 Prepare purchases budgets for October, November, and December (in units).