Streamer Company sells float-tubes for recreational fly- fishing. A review of the company's historical operations shows that gross margin consistently averages 40% of sales. Company guidelines indicate that ending inventory at the end of any quarter should always be 25% of the next quarter's budgeted cost of goods sold. The expected sales for Streamer's next four quarters are shown below. First quarter $800,000 Second quarter 950,000 Third quarter 900,000 Fourth quarter 850,000 If Streamer prepares a pro-forma income statement for the first quarter, what amount would be shown for purchases (assume the year end inventory balance is $120,000)? $457,500 $502,500 $800,000 $581,000