Spitzer Company has collected sales forecasts for next year from three people.

They have estimated that the cost of goods sold is 70 percent of sales. The company tries to maintain 10 percent of next quarter's expected cost of goods sold as the current quarter's ending inventory. The ending inventory of this year is $25,000. For budgeting, the ending inventory of the next year is expected to be $28,000.
Required
a. Construct a spreadsheet that allows the inventory purchases budget to be prepared for each of the preceding estimates.
Spreadsheet Tips
The VLOOKUP function can be used to choose one line of the preceding estimates. See the spreadsheet tips in Chapter 6 for an explanation of VLOOKUP.

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Sources of Sales Estimate First Second Quarter Third Quarter Fourth Quarter Quarter $520,000 540,000 460,000 a, Sales manager b. Marketing consultant c. Production manager $410,000 480,000 360,000 $370,000 400,000 350,000 $610,000 580,000