Executive officers of Franklin Company are wrestling with their budget for the next year. The following are two

different sales estimates provided by two different sources.

Franklin's past experience indicates that cost of goods sold is about $60$ percent of sales revenue. The company tries

to maintain $20$ percent of the next quarter's expected cost of goods sold as the current quarter's ending inventory.

This year's ending inventory is $$26,000.$ Next year's ending inventory is budgeted to be $$27,000.$

Required

a$.$ Prepare an inventory purchases budget using the sales manager's estimate.

b$.$ Prepare an inventory purchases budget using the marketing consultant's estimate.

Complete this question by entering your answers in the tabs below.

Prepare an inventory purchases budget using the sales manager's estimate.

Note: Round your final answers to nearest whole dollar amount.