3 Peabody, Inc., sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July. May June July $69,000 $79,000 $89,000 $95,000 April Budgeted cost of goods sold s Peabody had a beginning inventory balance of $4,400 on April 1 and a beginning balance in accounts payable of $14,600. The company desires to maintain an ending inventory balance equal to 15 percent of the next period's cost of goods sold. Peabody makes all purchases on account. The company pays 65 percent of accounts payable in the month of purchase and the remaining 35 percent in the month following purchase. Required a. Prepare an inventory purchases budget for April, May, and June. Inventory Purchases Budget Budgeted cost of goods sold April May June $ 69,000 $ 79,000 $ 89,000 Inventory needed 69,000 79,000 89,000 Required purchases (on account) $ 69,000 $ 79,000 $ 89,000