Peabody, Inc., sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July Budgeted cost of goods sold April May June July $79,000 $89,000 $99,000 $105,000 Peabody had a beginning inventory balance of $2,900 on April 1 and a beginning balance in accounts payable of $15,400. The company desires to maintain an ending inventory balance equal to 15 percent of the next period's cost of goods sold. Peabody makes all purchases on account. The company pays 70 percent of accounts payable in the month of purchase and the remaining 30 percent in the month following purchase. Required a. Prepare an inventory purchases budget for April, May, and June. Inventory Purchases Budget Budgeted cost of goods sold April May June $ 79,000 $ 89,000 $ 99,000 Inventory needed Required purchases (on account) Ending inventory c. Prepare a schedule of cash payments for inventory for April, May, and June. April May June Schedule of Cash Payments Payment of current accounts payable Payment of previous accounts payable Total budgeted payments for inventory d. Determine the balance in accounts payable Peabody will report on the end-of-quarter pro forma balance sheet. Accounts payable