Peabody, Inc , sells fireworks The companys 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 $62,000 $72,000 $82,000 $88,000 Peabody had a beginning inventory balance of $3,400 on April 1 and a beginning balance in accounts payable of $15,600 The company desires to maintain an ending inventory balance equal to 15 percent of the next periods cost of goods sold Peabody 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 Peabody 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 Peabody will report on the end of quarter pro forma balance sheet Peabody, Inc , sells fireworks The companys 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 $62,000 $72,000 $82,000 $88,000 Peabody had a beginning inventory balance of $3,400 on April 1 and a beginning balance in accounts payable of $15,600 The company desires to maintain an ending inventory balance equal to 15 percent of the next periods cost of goods sold Peabody 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 Peabody 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 Peabody will report on the end of quarter pro forma balance sheet

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 07, 2024

Peabody, Inc., sells fireworks. The companys marketing director developed the following cost of goods sold budget for April, May, June, and July. April May June

Peabody, Inc., sells fireworks. The companys 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	$62,000	$72,000	$82,000	$88,000

Peabody had a beginning inventory balance of $3,400 on April 1 and a beginning balance in accounts payable of $15,600. The company desires to maintain an ending inventory balance equal to 15 percent of the next periods cost of goods sold. Peabody 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