Elgin Drugstores, Inc. sells prescription drugs, over-the-counter drugs, and some groceries. The purchasing manager prepared the following inventory purchases budget. For this year, Elgin expects an ending inventory balance equal to 10 percent of the following month's cost of goods sold. April's budgeted cost of goods sold amounts to $37,500.

Required
a. Complete the inventory purchases budget by filling in the missing amounts.
b. Determine the amount of cost of goods sold the company will report on the first quarter pro forma income statement.
c. Determine the amount of ending inventory the company will report on the first quarter pro forma balance sheet.

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Inventory Purchases Budget January $50,000 3,500 53,500 5,000 $48,500 February $35,000 March $40,000 Budgeted cost of goods sold Plus: Desired ending inventory Inventory needed Less: Beginning inventory Required purchases (on account)