Preparing an operating budget Tremont, Inc. sells tire rims. Its sales budget for the nine months ended September 30, 2014, follows: Quarter Ended Nine-Month Total March 31 June 30 September 30 Cash sales, 20% $ 24,000 $ 34,000 $ 29,000 $ 87,000 Credit sales, 80% 96,000 136,000 116,000 348,000 Total sales $ 120,000 $ 170,000 $ 145,000 $ 435,000 In the past, cost of goods sold has been 40% of total sales. The director of marketing and the financial vice president agree that each quarters ending inventory should not be below $20,000 plus 10% of cost of goods sold for the following quarter. The marketing director expects sales of $220,000 during the fourth quarter. The January 1 inventory was $32,000. Prepare an inventory, purchases, and cost of goods sold budget for each of the first three quarters of the year. Compute cost of goods sold for the entire nine-month period