Baird Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget. Bairds policy is to maintain an ending inventory balance equal to 20 percent of the following months cost of goods sold. Aprils budgeted cost of goods sold is $79,000.

Required

a. Complete the inventory purchases budget by filling in the missing amounts.

Inventory Purchases Budget
	January	February	March
Budgeted cost of goods sold	$51,000	$55,000	$61,000
Plus: Desired ending inventory	11,000
Inventory needed	62,000
Less: Beginning inventory	10,200
Required purchases (on account)	$51,800

b. Determine the amount of cost of goods sold the company will report on its first quarter pro forma income statement.

c. Determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first quarter.