A sales budget has been prepared for April. Management wants the amount of ending inventory each month to be equal to 10% of the next months cost of goods sold. April cost of goods sold is projected at $80,000 and May cost of goods sold is projected at $60,000. Ending inventory at the end of March is expected to be $8,000. Based on this information, what would the amount of purchases be for April?

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Ans: $78000