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I JUST NEED C and D thank you. Franklin, Inc. sells fireworks. The company's marketing director developed the following cost of goods sold budget for
I JUST NEED C and D thank you.
Franklin, Inc. sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July. April $71,000 $81,000 $91,00 $97,e00 May June uly Budgeted cost of goods sold Franklin had a beginning inventory balance of $4,500 on April 1 and a beginning balance in accounts payable of $14,300. The company desires to maintain an ending inventory balance equal to 10 percent of the next period's 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 a. Prepare an inventory purchases budget for April, May, and June. b. Determine the amount of ending inventory Franklin 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 Franklin will report on the end-of-quarter pro forma balance sheet. Complete this question by entering your answers in the tabs below. Required ARequired B Required C Required D Prepare an inventory purchases budget for April, May, and June. Inventory Purchases Budget Budgeted cost of goods sold April S 71,000 8,100 MayJune 81,000S 91,000 Plus: Desired ending inventory Inventory needed 9,1009,700 90,100 100,700 8,100! 82,000 S 91,600 79,100 4.500| Less: Beginning inventory Required purchases (on account) 9,100 S 74,600 Required A Required B > Required ARequired BRequired C Required D Determine the amount of ending inventory Franklin will report on the end-of-quarter pro forma balance sheet Ending inventory 9,700Step by Step Solution
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