Exercise 7-10A (Algo) Preparing Inventory purchases budgets with different assumptions LO 7-3 Executive officers of Zachary Company are wrestling with their budget for the next year. The following are two different sales estimates provided by two difference sources. First Second Third Fourth Source of Estimate Quarter Quarter Quarter Quarter Sales manager $383,000 $315,000 $284,000 $493,000 Marketing consultant 522.000 461,000 412,000 654,000 Zachary's past experience indicates that cost of goods sold is about 60 percent of sales revenue. The company tries to maintain 15 percent of the next quarter's expected cost of goods sold as the current quarter's ending inventory. This year's ending inventory is $23,000. Next year's ending inventory is budgeted to be $24.000, Required a. Prepare an inventory purchases budget using the sales manager's estimate b. Prepare an inventory purchases budget using the marketing consultant's estimate, Required A Required B Prepare an inventory purchases budget using the sales manager's estimate. (Round your final answers to nearest whole doll amount.) Second Fourth First Quarter Third Quarter Quarter Quarter $ 383,000 $ 315,000 $ 284 000 $ 483 000 Sales Total inventory needed Required purchases Required B Exercise 7-10A (Algo) Preparing Inventory purchases budgets with different assumptions LO 7-3 Executive officers of Zachary Company are wrestling with their budget for the next year. The following are two different sales estimates provided by two difference sources. First Second Third Fourth Source of Estimate Quarter Quarter Quarter Quarter Sales manager $383,000 $315,000 $284,000 $493,000 Marketing consultant 522.000 461,000 412,000 654,000 Zachary's past experience indicates that cost of goods sold is about 60 percent of sales revenue. The company tries to maintain 15 percent of the next quarter's expected cost of goods sold as the current quarter's ending inventory. This year's ending inventory is $23,000. Next year's ending inventory is budgeted to be $24.000, Required a. Prepare an inventory purchases budget using the sales manager's estimate b. Prepare an inventory purchases budget using the marketing consultant's estimate, Required A Required B Prepare an inventory purchases budget using the sales manager's estimate. (Round your final answers to nearest whole doll amount.) Second Fourth First Quarter Third Quarter Quarter Quarter $ 383,000 $ 315,000 $ 284 000 $ 483 000 Sales Total inventory needed Required purchases Required B