Which of the following equations is used in a merchandise purchases budget?

Multiple Choice

Budgeted cost of goods sold $+$ desired ending merchandise inventory $-$ beginning merchandise inventory $=$ Required purchases

Budgeted cost of goods sold $-$ desired ending merchandise inventory $+$ beginning merchandise inventory $=$ Required purchases

Budgeted cost of goods sold $-$ desired beginning merchandise inventory $+$ ending merchandise inventory $=$ Required purchases

Budgeted cost of goods sold $+$ desired beginning merchandise inventory $-$ ending merchandise inventory $=$ Required purchases