Galaxy Lighting Company manufactures and sells lighting fixtures. Estimated sales for the next three months are:September $350,000October 500,000November 400,000

Sales for August were $400,000. All sales are on account. Galaxy Lighting Company estimates that 60% of the accounts receivable are collected in the month of sale with the remaining 40% collected the following month. The units sell for $30 each. The cash balance for September 1 is $100,000.

Generally, 60% of purchases are due and payable in the month of purchase with the remainder due the following month. Purchase cost per unit for materials is $18. The company maintains an end-of-the-month inventory of 1,000 units plus 10% of next month’s unit sales. Prepare a cash receipts schedule for September and October and a purchases budget for August, September, and October.