Naftel Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget. Naftels policy is to maintain an ending inventory balance equal to 10 percent of the following months cost of goods sold. Aprils budgeted cost of goods sold is $84,000.

January

February

March

Budgeted cost of goods sold

$70,000

$75,000

$81,000

Plus: Desired ending inventory

7,500

?

?

Inventory needed

77,500

?

?

Less: Beginning inventory

7,000

?

?

Required purchases (on account)

$70,500

?

?

(a)	Complete the inventory purchases budget by filling in the missing amounts. (Input all amounts as positive value.Omit the "$" sign in your response.)

Inventory Purchases Budget

January

February

March

Budgeted cost of goods sold

$

70,000

$

75,000

$

81,000

Plus: Desired ending inventory

7,500

Total inventory needed

77,500

Less: Beginning inventory

7,000

Required purchases (on account)

$

70,500

$

$

(b)

Determine the amount of cost of goods sold the company will report on its first quarter pro forma income statement

(c)	Determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first quarter.