Swenson readers sells e-readers, its sales budget for the nine months ended september 30 follows:

In the past cost of goods sold has been 75% of total sales. The director of marketing and the financial vice president agree that each quarter's ending inventory should not be below $30,000 plus 20% 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 $45,000/

Prepare a cost of goods sold, inventory, and purchases budget for each of the first three quarteres of the year. Compute cost of goods sold for the entire nine-month period.

DATA:

	Quarter Ended	Quarter Ended	Quarter Ended	Nine month
	March 31	Jun 30	Sept 30	Total
Cash Sales 30%	30,000	45,000	37,500	112,500
Credit sales 70%	70,000	105,000	87,500	262,500
Total sales 100$	100,000	150,000	125,000	375,000