Problem 14-18 Preparing an inventory purchases budget and schedule of cash payments LO 14-3 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 $37,500 $34.000 $30,000 $45,000 Budgeted cost of goods sold 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 an ending inventory balance equal to 10 percent of the next period'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 a. Prepare an inventory purchases budget for April, May, and June. b. Determine the amount of ending Inventory Humboldt 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 Humboldt will report on the end of quarter pro forma balance sheet makes all purchases on account. The company pays 60 percent of accounts payable in the month of purchase and the 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 Humboldt 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 Humboldt will report on the end of quarter pro forma balance sheet. Complete this question by entering your answers in the tabs below. Required A Required 8 Required C Required D Prepare an inventory purchases budget for April, May, and June. Inventory Purchases Budget Budgeted cost of goods sold April 37,500 May 34,000 June $30,000 $ $ Inventory needed MacBook Pro Help Save & Exit Su Check my wo company desires to maintain an ending Inventory balance equal to 10 percent of the next period'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 a. Prepare an inventory purchases budget for April, May, and June. b. Determine the amount of ending Inventory Humboldt 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 Humboldt will report on the end of quarter pro forma balance sheet. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required Determine the amount of ending inventory Humboldt will report on the end-of-quarter pro forma balance sheet Ending inventory MacBook Pro D x Check my word company desires to maintain an ending Inventory balance equal to 10 percent of the next period'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 a. Prepare an inventory purchases budget for April, May, and June. b. Determine the amount of ending inventory Humboldt 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 Humboldt will report on the end of quarter pro forma balance sheet. Complete this question by entering your answers in the tabs below. Required A Required Required Required D 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 Required ) MacBook Pro unset s N Help Save & ExtS Check my wc Humboldt had a beginning inventory balance of $1800 on Apni 1 and a beginning balance in accounts payable of 3/400. The company desires to maintain an ending inventory balance equal to 10 percent of the next period'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 a. Prepare an inventory purchases budget for April, May, and June. b. Determine the amount of ending Inventory Humboldt 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 Humboldt will report on the end of quarter pro forma balance sheet Complete this question by entering your answers in the tabs below. Required A Required B Required C Requireto Determine the balance in accounts payable Humboldt will report on the end-of-quarter pro forma balance sheet. Required MacBook Pro w so
