Wynne Company has a broad range of products it sells in a four-state area. Sales for the four quarters of 2016 are expected to be $448,000, $789,000, $804,000, and $550,000, for an annual total of $2,591,000. Cost of goods sold averages 60% of sales. Ending inventory for each quarter should be 15% of cost of goods sold for the following quarter. Inventory at January 1 is expected to be $40,000. Required: a. Show calculations for ending inventory, purchases, and cost of goods sold for the first three quarters of 2016. b. Assume that all the information above has come from the President, the Marketing Manager, and the Chief Financial Officer of Wynne. Briefly describe the potential advantages of the top-down budgeting approach in use at this time. What risks, if any, does the company face because of this strategy?