Preparing a schedule of cash payments for inventory purchases Major Grocery buys and sells groceries in a community far from any major city. Tim Major, the owner, budgeted the store’s purchases as follows:

Major’s suppliers require that 70 percent of accounts payable be paid in the month of purchase. The remaining 30 percent is 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 Major will report on the store’s quarterly pro forma balance sheet.