Executive officers of Baird Company are wrestling with their budget for the next year. The following are two different sales estimates provided by two difference sources.

Source of Estimate	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
Sales manager	$	384,000		$	312,000		$	275,000		$	471,000
Marketing consultant		523,000			466,000			407,000			649,000

Bairds past experience indicates that cost of goods sold is about 65 percent of sales revenue. The company tries to maintain 15 percent of the next quarters expected cost of goods sold as the current quarters ending inventory. This years ending inventory is $34,000. Next years ending inventory is budgeted to be $35,000.

Required

1. Prepare an inventory purchases budget using the sales managers estimate.

2. Prepare an inventory purchases budget using the marketing consultants estimate.