Adams Company sells lamps and other lighting fixtures. Adams's policy is to maintain an ending inventory balance equal to 20 percent of the following month's cost of goods sold. Budgeted cost of goods sold for January, February March, and April is: $52,000, $56,000, $62,000, and $78,000 respectively. Beginning inventory in January is $10,400. Required 1. Prepare the inventory purchases budget by month for January, February, and March. 2. What is the amount of cost of goods sold the company will report on its first quarter pro forma income statement? 3. What is the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first quarter