Gibson, 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	$74,000	$84,000	$94,000	$100,000

Gibson had a beginning inventory balance of $4,000 on April 1 and a beginning balance in accounts payable of $14,900. The company desires to maintain an ending inventory balance equal to 20 percent of the next periods cost of goods sold. Gibson 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

1. Prepare an inventory purchases budget for April, May, and June.

2. Determine the amount of ending inventory Gibson will report on the end-of-quarter pro forma balance sheet.

3. Prepare a schedule of cash payments for inventory for April, May, and June.

4. Determine the balance in accounts payable Gibson will report on the end-of-quarter pro forma balance sheet.

5. Complete this question by entering your answers in the tabs below

6. Inventory Purchases Budget	April	May	June
   Budgeted cost of goods sold	$74,000	$84,000	$94,000
   Inventory needed
   Required purchases (on account)

   Prepare an inventory purchases budget for April, May, and June.

7. Determine the amount of ending inventory Gibson will report on the end-of-quarter pro forma balance sheet.

   	Ending inventory

8. Prepare a schedule of cash payments for inventory for April, May, and June. (Round your final answers to the nearest whole dollar.)

   Schedule of Cash Payments	April	May	June
   Payment of current accounts payable
   Payment of previous accounts payable
   Total budgeted payments for inventory

9. Determine the balance in accounts payable Gibson will report on the end-of-quarter pro forma balance sheet.

   	Accounts payable