Comprehensive Cash Budget Sedona Gear Company,a Rapidly Growing Distributor of Camping

Comprehensive Cash Budget Sedona Gear Company,a rapidly growing distributor of camping equipment,is formulating its plans for the coming year.Cody Mosbay,the firm's marketing director,has completed the following sales forecast.
Month Sales Month Sales
January $ 900,000 July $1,900,000
February $1,000,000 August $1,900,000
March $ 900,000 September $1,600,000
April $1,200,000 October $1,600,000
May $1,500,000 November $1,800,000
June $1,900,000 December $2,000,000
Patti Bodkin,an accountant in the Planning and Budgeting Department,is responsible for preparing the cash flow projection.She has gathered the following information.
All sales are made on credit.
Sedona's excellent record in accounts receivable collection is expected to continue,with 65 percent of billings collected in the month after sale and the remaining 35 percent collected in the second month after the sale.
Cost of goods sold,Sedona's largest expense,is estimated to equal 45 percent of sales dollars.Seventy percent of inventory is purchased one month prior to sale and 30 percent during the month of sale.For example,in April,30 percent of April cost of goods sold is purchased and 70 percent of May cost of goods sold is purchased.
All purchases are made on account.Historically,70 percent of accounts payable have been paid during the month of purchase,and the remaining 30 percent in the month following purchase.
Required:
a.Prepare the cash receipts budget for the second quarter.
b.Prepare the purchases budget for the second quarter.
c.Prepare the cash payments budget for the second quarter.