The Ruggid Jeens Company offers a broad range of clothing it sells in a four-state area. Sales for the four quarters of 2022 are expected to be $1,715,000, $1,789,000, $2,030,000, and $1,750,000, for an annual total of $7,284,000.

Cost of goods sold averages 50% of sales. Ending inventory for each quarter should be 10% of cost of goods sold for the following quarter. Inventory at January 1 is expected to be $85,000.

Required:

1. Show calculations for ending inventory, purchases, and cost of goods sold for the first three quarters of 2022.
2. Explain in your own words why you could not perform the same calculations for the fourth quarter that you performed for the first three.
3. Briefly explain in your own words what additional information the company will need to prepare the schedule of cash collections for the same three quarters.