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Thornton, Inc. sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July. April $66,000 $76,000
Thornton, Inc. sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July. April $66,000 $76,000 $86,000 $92,000 May June July Budgeted cost of goods sold Thornton had a beginning inventory balance of $3,300 on April 1 and a beginning balance in accounts payable of $14,300. The company desires to maintain an ending inventory balance equal to 20 percent of the next period's cost of goods sold. Thornton 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 Thornton 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 Thornton will report on the end-of-quarter pro forma balance sheet. Complete this question by entering your answers in the tabs below Required A Required BRequired C Required D Prepare an inventory purchases budget for April, May, and June entory Purchases Budget Budgeted cost of goods sold April S 66,000S 76,000S 86,000 une Inventory needed 66,000 76,000 86,000 Required purchases (on account) S 66,000 S 76,000 S 86,000
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