Exercise 7-10A (Algo) Preparing inventory purchases budgets with different assumptions LO 7-3 Executive officers of Zachary 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 $375, eee 52e, eee Second Quarter $312, eee 451, eee Third Quarter $273,602 417, eee Fourth Quarter $471,000 656,689 Zachary's past experience indicates that cost of goods sold is about 60 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 $34,000. Next year's ending inventory is budgeted to be $35,000 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 whole dollar amount.) Second First Quarter Third Quarter Fourth Quarter Quarter $ 375,000 $ 312,000 $ 273.000 $ 471,000 Sales 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 whole dollar amount.) Second Fourth First Quarter Quarter Third Quarter Quarter $ 375,000 $ 312,000 $ 273,000 $ 471,000 Sales Total inventory needed 0 0 0 0 $ 0 $ 0 $ Required purchases 0 0 $ Prev 1 of 5 Next > 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 nearest dollar amount.) First Quarter Second Quarter 520,000 $ 451,000 $ Fourth Third Quarter Quarter 417.000 $ 656,000 Sales $ Total inventory needed 0 0 0 0 Required purchases $ 0 $ 0 $ 0 $ 0