Vernon, Inc. sells fireworks. The company’s marketing director developed the following cost of goods sold budget for Apr

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Vernon, Inc. sells fireworks. The company’s marketing director
developed the following cost of goods sold budget for April, May,
June, and July.
Vernon had a beginning inventory balance of $2,700 on April 1
and a beginning balance in accounts payable of $15,400. The company
desires to maintain an ending inventory balance equal to 10 percent
of the next period’s cost of goods sold. Vernon 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
Prepare an inventory purchases budget for April, May, and
June.
Determine the amount of ending inventory Vernon will report on
the end-of-quarter pro forma balance sheet.
Prepare a schedule of cash payments for inventory for April,
May, and June.
Determine the balance in accounts payable Vernon will report on
the end-of-quarter pro forma balance sheet.