Sales for May were $1,732,500 and will be approximately $1,845,000 for the current month of June.

It is projected that the current collection period of 60 days will be reduces to 50 days for July and August,

42 days for September and October, and will meet the target of 35 days in November and December.

Purchases are forecast to be $585,000 a month beginning in July. In May they were $630,000 and in June they

are expected to be $592,500. The purchases are paid in 40 days. Materials used per month beginning in July will

be $744,000. Labour expense will be paid when incurred and are expected to be $195,000 a month. Other

expenses of manufacturing will also be paid as incurred and are expected to be $375,000 a month. Cost of goods

sold has regularly been 70 percent of sales.

Prepare cash payment, inventory and cash receipt information first. Then prepare the proforma income statement
and the proforma balance sheet.
			Toys for You
in thousands
	May	June	July	August	Sept.	October	Nov.	Dec.
Purchases	$630.0	$592.5	$585.0	$585.0	$585.0	$585.0	$585.0	$585.0
Payment			630.0	FORMULA	FORMULA	FORMULA	FORMULA	FORMULA
Accounts payable		945.0	900.0	#VALUE!	#VALUE!	#VALUE!	#VALUE!	#VALUE!
Labour			195.0	195.0	195.0	195.0	195.0	195.0

How do I calculate the forumla for the Payment