E22-31 Preparing an operating budget-inventory, purchases, and cost of goods sold budget Slate, Inc. sells tire rims. Its sales budget for the nine months ended September 30,2018 , follows: In the past, cost of goods sold has been 40% of total sales. The director of marketing and the financial vice president agree that each quarter's ending inventory should not be below $5,000 plus 10% of cost of goods sold for the following quarter. The marketing director expects sales of $240,000 during the fourth quarter. The January 1 inventory was $38,000. Prepare an irventory, purchases, and cost of goods sold budget for each of the first three quarters of the year. Compute cost of goods sold for the entire nine-month period. Qtr. ended Jun. 30 purchases $75,000