Prepare an inventory purchases budget for april

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Thornton had a beginning inventory balance of $2,800 on April land a beginning balance in accounts payable of $14,400. The company desires to maintain an ending inventory balance equal to 15 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.

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

Reference no: EM131712205

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