Fanning Bookss accountant prepared the following schedule of cash payments for inventory purchases. Fanning Bookss suppliers require that 90 percent of purchases on account be paid in the month of purchase; the remaining 10 percent are paid in the month following the month of purchase.

	April			May			June
Required purchases (on account)	$	115,000		$	135,000		$	147,000

Required

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

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

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

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

Accounts payable

Schedule of Cash Payments for Inventory Purchases
	April	May	June
Payment for current accounts payable	$103,500
Payment for previous accounts payable	14,000
Total budgeted payments for inventory	$117,500