e T Amy Cuddy Your body Fanning Inc sells fireworks The comp

e T Amy Cuddy: Your body Fanning, Inc. sells fireworks. The company\'s marketing director developed the following cost of goods sold budget for April, May, June. and July. Bradgeted cost of goods sold 65,00075,000 $85,000 $91,000 Fanning had a beginning inventory balance of $4,300 on April 1 and a beginning balance in accounts payable of $13,900. The company desires to maintain an ending inventory balance equal to 15 percent of the next period\'s cost of goods sold. Fanning makes all purchases on account. The company pays 65 percent of accounts payable in the month of purchase and the remaining 35 percent In the month following purchase a. Prepare an inventory purchases budget for April, May, and June b. Determine the amount of ending inventory Fanning will report on the end-of-quarter pro forma balance sheet c. Prepare a schedule of cash payments for Inventory for April, May, and June. d. Determine the balance in accounts payable Fanning will report on the end-of q uarter pro forma balance sheet Complete this question by entering your answers in the tabs below. Required A equired B Required C Required D of cash payments for inventory for April, May, and June (Round your final dollar.) Payment of curment accounts payable MacBook 888 a 3 5 6 8 W E

Solution

A Inventory Purchase Budget: April May June Budgeted COGS 65000 75000 85000 April May June July Add: Closing Inventory 11250 12750 13650 (15% of Next Period\'s COGS) Budgeted COGS 65000 75000 85000 91000 Total Needs 76250 87750 98650 Less: Opening Inventory 4300 11250 12750 Purchases 71950 76500 85900 B Inventory at End of Qtr: 13650 (15% of 91000) C Schedule of Cash Payment April May June In the Month (65% of Purchase) 46768 49725 55835 In the Following Month (35% of Purchase) 13900 25183 26775 Total 60668 74908 82610 D Account Payable at End of Qtr: 30065 (35% of 85900)