Suppose Strobel Furniture Company prepared a sales budget showing sales of $30,000 in the first quarter, $80,000 in the second quarter, $50,000 in the third quarter and $40,000 in the fourth quarter. Assume the company maintains sufficient inventory to cover one-half of the next quarters cost of sales. Cost of goods sold is 55% of sales. The ending merchandise inventory this year is expected to be $11,000. Prepare the purchases budget.