Integrated Purchases and Cash Payments Budget Senegalese Specialties,a Retailer of West

Integrated purchases and cash payments budget Senegalese Specialties,a retailer of West African food products,has completed the sales forecast for the coming year:
January $37,000 July $38,000
February $38,000 August $37,000
March $32,000 September $33,000
April $40,000 October $40,000
May $36,000 November $48,000
June $31,000 December $52,000
Senegalese Specialties maintains an ending inventory level of 60 percent of the following month's cost of goods sold.The company's cost of goods sold is 35 percent of sales.
Required:
a.Prepare Senegalese Specialties purchases budget for June and July.Use the following format:
Budgeted sales dollars
* Cost of goods sold percentage
= Cost of goods sold
+ Ending inventory
= Total inventory required
- Beginning inventory
= Budgeted purchases
b.Assuming that Senegalese Specialties pays for 50 percent of its purchases in the month of purchase and the remaining 50 percent in the month following the purchase,prepare the company's cash payments budget for July.