Problem 14-18A (Algo) Preparing an inventory purchases budget and schedule of cash payments LO 14- 3 Vernon, 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 $62,000 $72,000 $82,000 $88,000 Vernon had a beginning inventory balance of $4,400 on April 1 and a beginning balance in accounts payable of $14,200. The company desires to maintain an ending inventory balance equal to 20 percent of the next period's cost of goods sold. Vernon 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 Vernon 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 Vernon will report on the end-of-quarter pro forma balance sheet. Required A Required B Required C Required D Prepare an inventory purchases budget for April, May, and June. Inventory Purchases Budget Budgeted cost of goods sold April 62,000 $ May June 72,000 $ 82,000 $ Inventory needed 62,000 72,000 82,000 Required purchases (on account) $ 62,000 $ 72,000 $ 82,000 Required A Required B Required C Required D Determine the amount of ending inventory Vernon will report on the end-of-quarter pro forma balance Ending inventory Required A Required B Required C Required D Prepare a schedule of cash payments for inventory for April, May, and June. (Round your final answers to the nearest whole dollar.) April May June Schedule of Cash Payments Payment of current accounts payable Payment of previous accounts payable Total budgeted payments for inventory $ 0 0 0 Required A Required B Required C Required D Determine the balance in accounts payable Vernon will report on the end-of-quarter pro forma balance sheet. Accounts payable