Stuart, Inc. sells fireworks. The companys 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	$63,000	$73,000	$83,000	$89,000

Stuart had a beginning inventory balance of $4,500 on April 1 and a beginning balance in accounts payable of $15,000. The company desires to maintain an ending inventory balance equal to 10 percent of the next periods cost of goods sold. Stuart 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

1. Prepare an inventory purchases budget for April, May, and June.

   Inventory Purchases Budget	April	May	June
   Budgeted cost of goods sold	$63,000	$73,000	$83,000
   Inventory needed
   Required purchases (on account)

2. Determine the amount of ending inventory Stuart will report on the end-of-quarter pro forma balance sheet.

3. Prepare a schedule of cash payments for inventory for April, May, and June.

   Schedule of Cash Payments	April	May	June
   Payment of current accounts payable
   Payment of previous accounts payable
   Total budgeted payments for inventory

4. Determine the balance in accounts payable Stuart will report on the end-of-quarter pro forma balance sheet.