Peabody, Inc., sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July. Budgeted cost of goods sold April May June July $68,000 $78,000 $88,000 $94,000 Peabody had a beginning inventory balance of $3,000 on April 1 and a beginning balance in accounts payable of $14,400. The company desires to maintain an ending inventory balance equal to 10 percent of the next period's cost of goods sold. Peabody makes all purchases on account. The company pays 60 percent of accounts payable in the month of purchase and the remaining 40 percent in the month following purchase. Required a. Prepare an inventory purchases budget for April, May, and June. Inventory Purchases Budget April May June Budgeted cost of goods sold $ 68,000 $ 78,000 $88,000 Inventory needed Required purchases (on account)