7) Prescott Company wants an ending inventory balance each month equal to 30% of that month's projected Cost of Goods Sold. The balance in ending inventory at the end of January was $24,000 and projected Cost of Goods Sold for February is $90,000. Based on this information, inventory purchases for February should be? Work Area (optional) Answer: (5 pts) Inventory Purchases for February 8) Indicate whether each of the following statements is True(T) or False(F). (1 pt each) The three major categories of the master budget are the operating budgets, the capital budgets, and the financial statement budgets. The master budget usually starts with a budgeted income statement. The first budget prepared in a master budget is the sales budget. The purchasing manager should provide the projections for the sales budget (forecast). Participative budgeting means that lower level employees are primarily responsible for preparing the budget. A master budget usually provides information about plans and expectations for the upcoming 1 year period. The nature of planning changes with the length of time period being considered. Generally, the shorter the time period, the more specific the plans. Four purposes or reasons for budgeting involve planning, coordination, performance measurement and corrective action. 9) Jasper Inc. budgeted the following transactions for June. The beginning cash balance was $70,000. The company desires to have a $45,000 ending cash balance