Problem $14-18$A $($Algo$)$ Preparing an inventory purchases budget and schedule of cash payments LO $143$

$03\mathrm{.}02228$

Stuart, Incorporated sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July:

$\backslash$table$[[,,,,],[$Budgeted cost of goods sold,April,May,June,July$],[$$$61,000,$$$71,000,$$$81,000,$$$87,000,]]$

Stuart had a beginning inventory balance of $$3,300$ on April $1$ and a beginning balance in accounts payable of $$15,300.$ The company desires to maintain an ending inventory balance equal to $20$ percent of the next period's cost of goods sold. Stuart 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.

Required

a$.$ Prepare an inventory purchases budget for April, May, and June.

b$.$ Determine the amount of ending inventory Stuart 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 Stuart will report on the end$-$of$-$quarter pro forma balance sheet.

Complete this question by entering your answers in the tabs below.

Prepare an inventory purchases budget for April, May, and June.

Inventory Purchases Budget

April

May

June