Problem 7-18A (Algo) Preparing an inventory purchases budget and schedule of cash payments LO 7-3 Gibson, Incorporated sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July. Gibson had a beginning inventory balance of $2,900 on April 1 and a beginning balance in accounts payable of $15,000. The compan desires to maintain an ending inventory balance equal to 20 percent of the next period's cost of goods sold. Gibson 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 Gibson 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 Gibson will report on the end-of-quarter pro forma balance sheet. Complete this question by entering your answers in the tabs below. Prepare an inventory purchases budget for April, May, and June. Problem 7-18A (Algo) Preparing an inventory purchases budget and schedule of cash payments LO 7.3 Gibson, Incorporated sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July. Gibson had a beginning inventory balance of $2,900 on April 1 and a beginning balance in accounts payable of $15,000. The company desires to maintain an ending inventory balance equal to 20 percent of the next period's cost of goods sold. Gibson 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 Gibson 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 Gibson will report on the end-of-quarter pro forma balance sheet. Complete this question by entering your answers in the tabs below. Determine the amount of ending inventory Gibson will report on the end-of-quarter pro forma balance sheet. Problem 7-18A (Algo) Preparing an inventory purchases budget and schedule of cash payments LO 7.3 Gibson, Incorporated sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July. Gibson had a beginning inventory balance of $2,900 on April 1 and a beginning balance in accounts payable of $15,000. The compan desires to maintain an ending inventory balance equal to 20 percent of the next period's cost of goods sold. Gibson 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 Gibson 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 Gibson will report on the end-of-quarter pro forma balance sheet. Complete this question by entering your answers in the tabs below. Prepare a schedule of cash payments for inventory for April, May, and June. (Round your final answers to the nearest whole dollar.) Problem 7-18A (Algo) Preparing an inventory purchases budget and schedule of cash payments LO 7-3 Gibson, Incorporated sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July. Gibson had a beginning inventory balance of $2,900 on April 1 and a beginning balance in accounts payable of $15,000. The company desires to maintain an ending inventory balance equal to 20 percent of the next period's cost of goods sold. Gibson 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 Gibson 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 Gibson will report on the end-of-quarter pro forma balance sheet. Complete this question by entering your answers in the tabs below. Determine the balance in accounts payable Gibson will report on the end-of-quarter pro forma balance sheet
