I need to prepare a budget for the months of JUly and August.
a.purchases budget
b. budgeted income statement
c. budgeted cash flows

Expected sales:
June $300,000
July $400,000
August $450,000
September $500,000

The cost of merchandise purchased is to be 60% of sales. The company policy is to maintain ending inventory equal to 50% of the next month's CGS. All purchases are credit purchases. Purchases are paid in full in the month after the purchase.

The beginning cash balance on July 1, 2009 is expected to be $20,000

Monthly operating expenses:
Sale salaries $20,000
Advertising 4% of sales
Delivery expense 2% of sales
Rent expense $3,000
Depreciation $ 700
Utilities $500
Insurance $300

Please help me prepare the purchases budget, income statement, and cash flows

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