Vivian Books buys books and magazines directly from publishers and distributes them to grocery stores. The wholesaler expects to purchase the following inventory.

April

May

June

Required purchases (on account)

$

117,000

$

137,000

$

149,000

Vivian Books’s accountant prepared the following schedule of cash payments for inventory purchases. Vivian Books’s suppliers require that 85 percent of purchases on account be paid in the month of purchase; the remaining 15 percent are paid in the month following the month of purchase.

Required

a.

Complete the schedule of cash payments for inventory purchases by filling in the missing amounts.

b.	Determine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the second quarter.

Transcribed Image Text:

Schedule of Cash Payments for Inventory Purchases April May June Payment for current accounts payable $ 99,450 Payment for previous accounts payable 9,000 Total budgeted payments for inventory $ 108,450 Schedule of Cash Payments for Inventory Purchases April May June Payment for current accounts payable $ 99,450 Payment for previous accounts payable 9,000 Total budgeted payments for inventory $ 108,450

Answer rating: 100% (QA)

Requirement a April May June Payment for current accounts ... View the full answer