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How do I solve for C and D? Fanning, Inc. sells fireworks. The company's marketing director developed the following cost of goods sold budget for
How do I solve for C and D?
Fanning, Inc. sells fireworks. The company's 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 $63,000 $73,000 $83,000 $89,000 Fanning had a beginning inventory balance of $3,300 on April 1 and a beginning balance in accounts payable of $15,300 The company desires to maintain an ending inventory balance equal to 20 percent of the next period's cost of goods sold Fanning makes all purchases on account. The company pays 60 percent of accounts payable in the month of purchase and the remaining 40 percent in the month following purchase Required a. Prepare an inventory purchases budget for April, May, and June b. Determine the amount of ending inventory Fanning will report on the end-of-quarter pro forma balance sheet c. Prepare a schedule of cash payments for inventory for April, May, and June. d. Determine the balance in accounts payable Fanning will report on the end of quarter pro forma balance sheet Required A Required B Required C Required D Prepare an inventory purchases budget for April, May, and June. June $ 83,000 17.800 Inventory Purchases Budget Budgeted cost of goods sold Plus: Desired ending inventory Inventory needed Less: Beginning inventory Required purchases (on account) April $ 63,000 14,600 77,600 (3,300) $ 74,300 May $ 73,000 16,600 89,600 (14,600) $ 75,000 100,800 (16,600) $ 84,200 Required A Required B Required C Required D Determine the amount of ending inventory Fanning will report on the end-of-quarter pro forma balance sheet. Ending inventory 17 800 Required A Required B Required c Required D Prepare a schedule of cash payments for inventory for April, May, and June. (Round your final answers to the nearest whole dollar.) April May June Schedule of Cash Payments Payment of current accounts payable Payment of previous accounts payable Total budgeted payments for inventory $ 0 $ 0 $ 0 Required A Required B Required C Required D Determine the balance in accounts payable Fanning will report on the end-of-quarter pro forma balance sheet. Accounts payableStep by Step Solution
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