Prepare a sample inventory purchases budget using the following assumptions. Cost of goods sold is 60% of sales. The company desires to maintain a minimum ending inventory equal to 30% of the following month's cost of goods sold. As of January 1, 2011, WPC makes all inventory purchases on account. The company pays 80% of accounts payable in the month of purchase. It pays the remaining 20% in the following month. Prepare a schedule of expected cash payments for inventory purchases. Use this information to determine the amount of cost of goods sold WPC would report on the first quarter pro forma income statement and the amounts of ending inventory and accounts payable it would report on the March 31 pro forma balance sheet. Prepare a sample inventory purchases budget using the following assumptions. Cost of goods sold is 60% of sales. The company desires to maintain a minimum ending inventory equal to 30% of the following month's cost of goods sold. As of January 1, 2011, WPC makes all inventory purchases on account. The company pays 80% of accounts payable in the month of purchase. It pays the remaining 20% in the following month. Prepare a schedule of expected cash payments for inventory purchases. Use this information to determine the amount of cost of goods sold WPC would report on the first quarter pro forma income statement and the amounts of ending inventory and accounts payable it would report on the March 31 pro forma balance sheet