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 Budgeted cost of goods sold April $75,000 May $85,000 June $95,000 July $101,000 Vernon had a beginning inventory balance of $3,900 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 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. 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