Franklin, Inc. sells fireworks. The companys marketing director developed the following cost of goods sold budget for April, May, June, and July.

	April	May	June	July
Budgeted cost of goods sold	$65,000	$75,000	$85,000	$91,000

Franklin had a beginning inventory balance of $3,900 on April 1 and a beginning balance in accounts payable of $15,000. The company desires to maintain an ending inventory balance equal to 15 percent of the next periods cost of goods sold. Franklin 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 Franklin 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 Franklin will report on the end-of-quarter pro forma balance sheet.