Vernon, Inc. sells fireworks. The company$$s 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 $$74,000$ $$84,000$ $$94,000$ $$100,000$

Vernon had a beginning inventory balance of $$4,300$ on April $1$ and a beginning balance in accounts payable of $$15,200.$ 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 $65$ percent of accounts payable in the month of purchase and the remaining $35$ percent in the month following purchase.

Required

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

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

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

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