Learning outcome: prepare an inventory purchases budget and related schedule of cash payments Humboldt, 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 $34,000 $30,00 545,000 $ 37.50 0 Humboldt had a beginning inventory balance of $1,800 on April 1 and a beginning balance in accounts payable of $7,400 The company desires to maintain a monthly ending inventory balance equal to 10 percent of the next month's cost of goods sold. Humboldt 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 1. Prepare an inventory purchases budget for April, May, and June April June Budgeted cost of goods sold 37,500 34,000 30,000 Plus: Desired ending inventory 3,400 Inventory needed 40,900 Less: Beginning inventory (1,800) Required purchases (on account) $39.100 May 2. Prepare a schedule of cash payments for inventory for April, May, and June. June April May Payment of current accounts payable 23,460 (60% purchase in current month) Payment of previous accounts payable 7,400 (40% purchase in previous month) Total budgeted payments for inventory $30,860 3. What is the balance of ending inventory that Humboldt will report on the end-of-quarter pro forma balance sheet? 4. What is the balance of accounts payable that Humboldt will report on the end-of-quarter pro forma balance sheet