17. Which of the following will occur if June sales are higher than its budgeted sales for that month? a. Actual July purchases will need to be lower than originally budgeted. b. Actual inventory at the end of June will be lower than originally budgeted. c. Actual June Cost of Goods Sold (COGS) would be lower than originally budgeted. d. Actual Revenues will be lower than budgeted for the month of June. 18. Elder, Caye, Dutson & Fink Drugstores, Inc. sells prescription drugs, over the counter drugs and groceries. The owners have asked for your help to prepare the inventory purchases budget for the first quarter. The company desires to maintain an ending inventory balance equal to 20 percent of the following month's cost of goods sold. April's budgeted cost of goods sold is expected to be $70,000. Inventory Purchases Budget January February March Budgeted Cost of Goods Sold $60,000 $55,000 $66,000 Plus: Desired Ending Inventory Equals: Inventory Needed Less: Beginning Inventory ($12,000) Equals: Required Purchases (on acct) Per your analysis, complete (fill-in) the inventory purchases budget above (3 pts). Show your computations below a. b. Determine the total amount of purchases (for all three months) required to satisfy this plan (1 pt). c. Determine the amount of ending inventory the company would report on their March 31t (ie. end of first quarter) "pro forma" Balance Sheet (what does "pro forma" mean?) (1 pt)