Woodwards Inc. is preparing its inventory purchase budget for the second quarter of 20YY, and provided the following sales budget for the second quarter of 20YY. April May June $500,000 $550,000 $600,000 Projected sales The following relevant information are also provided: Budgeted monthly cost of goods sold equals 50% of budgeted monthly sales. Each month's desired ending inventory should be $5,000 plus 15% of the current month's COGS The ending inventory balance at March 31 20YY was $40,000 All purchases are made on account. The company's suppliers require that 20% of accounts payable are paid during the month of purchase, with the remaining 80% paid in the month after purchase. The outstanding accounts payable at March 31, 20YY was $60,000 which is to be paid in April. Required: Use the Table below to prepare: a Purchase Budget and Cash Payment Schedule for the second quarter of 20YY Solution: Siddique, Salina: Relevant budgeted data to be reported in the Budgeted Income Statement and Budgeted Balance Sheet. Inventory purchases budget for Second quarter 20YY April | May June $ $ Proforma statement data $ $ $ Purchase Budget Budgeted cost of goods sold: Desired ending inventory Total inventory needed Less beginning inventory Required inventory purchases Siddique, Salina: Total Budgeted COGS to be reported in the Budgeted Income Statement of the Second Quarter of 20YY. Siddique, Salina: Desired Ending inventory to be reported in the Budgeted Balance Sheet as at Jume 30, 20YY. Siddique, Salina: Expected Accounts Payable to be reported in the Budgeted Balance Sheet as at June 30, 20YY. , $ $ $ $ Schedule of cash payments for: Current month's inventory purchases Previous month's inventory purchases Total cash payments for inventory