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Vivian Books buys books and magazines directly from publishers and distributes them to grocery stores. The wholesaler purchased $80,000 of inventory in March and expects
Vivian Books buys books and magazines directly from publishers and distributes them to grocery stores. The wholesaler purchased $80,000 of inventory in March and expects to purchase the following inventory in the second quarter. April May June Required Purchases (on account) $140,000 $160,000 $190,000 Vivian Books' suppliers require that 90% of purchases on account be paid in the month of purchase; the remaining 10% are paid in the following month. How much of April's purchases will be paid in April? Do not enter dollar signs or commas in your answers. How much of March's purchases will be paid in April? What is the total disbursement for Inventory in May? Determine the amount of A/P the company will report on its pro forma Balance Sheet at the end of the second quarter
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