Munoz Books buys books and magazines directly from publishers and distributes them to grocery stores. The wholesaler expects to purchase the following inventory:

	April			May			June
Required purchases (on account)	$	116,000		$	136,000		$	148,000

Munoz Books accountant prepared the following schedule of cash payments for inventory purchases. Munoz Books suppliers require that 95 percent of purchases on account be paid in the month of purchase; the remaining 5 percent are paid in the month following the month of purchase.

Required

1. Complete the schedule of cash payments for inventory purchases by filling in the missing amounts.

2. Determine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the sheet at the end of the second quarter.

June Schedule of Cash Payments for Inventory Purchases April May Payment for current accounts payable $ 110,200 Payment for previous accounts payable 8,000 Total budgeted payments for inventory $ 118,200 Accounts payable