Executive officers of Rundle Company are wrestling with their budget for the next year. The following are w different sales estimates provided by two difference sources: First Quarter $386,000 523,000 Third Quarter $279,000 412,000 Second Quarter $310,000 453,000 Source of Estimate Sales manager Marketing consultant Fourth Quarter $475,000 653,000 Rundle's past experience indicates that cost of goods sold is about 55 percent of sales revenue. The company tries to maintain 15 percent of the next quarter's expected cost of goods sold as the current quarter's ending inventory. This year's ending inventory is $30,000. Next year's ending inventory is budgeted to be $31,000. 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. Required A Required B Prepare an inventory purchases budget using the sales manager's estimate. (Round your final answers to nearest w amount.) First Quarter 386,000 Second Quarter $ 310,000 Third Quarter $ 279,000 Fourth Quarter $ 475,000 Sales Cost of goods sold Plus: Desired ending inventory Total inventory needed Less: Beginning inventory Required purchases 0 $ 0 $ Required B > Executive officers of Rundle 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 Sales manager Marketing consultant First Quarter $386,000 523,000 Second Quarter $310,000 453,000 Third Quarter $279,000 412,000 Fourth Quarter $475,000 653,000 Rundle's past experience indicates that cost of goods sold is about 55 percent of sales revenue. The company tries to maintain 15 percent of the next quarter's expected cost of goods sold as the current quarter's ending inventory. This year's ending inventory is $30,000. Next year's ending inventory is budgeted to be $31,000. 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. Required A Required B Prepare an inventory purchases budget using the marketing consultant's estimate. (Round your final answers to nea whole dollar amount.) First Quarter $ 523,000 Second Quarter $ 453,000 Third Quarter $ 412,000 Fourth Quarter $ 653,000 Sales Cost of goods sold Plus: Desired ending inventory Total inventory needed Less: Beginning inventory Required purchases 0 0 $ 0 $ 0 $ Required A Required B Lois Bragg owns a small restaurant in Boston. Ms. Bragg provided her accountant with the following summary information regarding expectations for the month of June. The balance in accounts receivable as of May 31 is $51,000. Budgeted cash and credit sales for June are $143,000 and $590,000, respectively. Credit sales are made through Visa and MasterCard and are collected rapidly. Eighty percent of credit sales is collected in the month of sale, and the remainder is collected in the following month. Ms. Bragg's suppliers do not extend credit. Consequently, she pays suppliers on the last day of the month. Cash payments for June are expected to be $710.000. Ms. Bragg has a line of credit that enables the restaurant to borrow funds on demand; however, they must be borrowed on the last day of the month. Interest is paid in cash also on the last day of the month. Ms. Bragg desires to maintain a $40,000 cash balance before the interest payment. Her annual interest rate is 10 percent Required a. Compute the amount of funds Ms. Bragg needs to borrow for June. b. Determine the amount of interest expense the restaurant will report on the June pro forma income statement c. What amount will the restaurant report as interest expense on the July pro forma income statement? (Round your answer to 2 decimal places.) Amount to be borrowed Interest expense (June) Interest expense (July)