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Naftel Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget. Naftels policy is to maintain an ending inventory balance equal to 10 percent of the following months cost of goods sold. Aprils budgeted cost of goods sold is $84,000.

	January	February	March
Budgeted cost of goods sold	$70,000	$75,000	$81,000
Plus: Desired ending inventory	7,500	?	?
Inventory needed	77,500	?	?
Less: Beginning inventory	7,000	?	?
Required purchases (on account)	$70,500	?	?
(a) Complete the inventory purchases budget by filling in the missing amounts. (Input all amounts as positive value.Omit the "$" sign in your response.) Inventory Purchases Budget January February March Budgeted cost of goods sold $ 70,000 $ 75,000 $ 81,000 Plus: Desired ending inventory 7,500 Total inventory needed 77,500 Less: Beginning inventory 7,000 Required purchases (on account) $ 70,500 $ $ (b) Determine the amount of cost of goods sold the company will report on its first quarter pro forma income statement (c) Determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first quarter.

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