rupert co 501060

Rupert Co. sells fireworks. The company s marketing director developed the following cost of goods sold budget for April, May and June:

Rupert had a beginning inventory balance of $3,600 on April 1 and a beginning balance in accounts payable of $14,800. The company wants to maintain an ending inventory balance equal to 10 percent of the next period s cost of goods sold. Rupert makes all purchases on account. The company pays 60 percent of accounts payable in the month of purchase and the remaining 40 percent in the month following purchase.

Required:
1) Prepare an inventory purchases budget for April, May and June.
2) Prepare a schedule of cash payments for inventory for April, May and June.

3) Determine the amount of ending inventory and the accounts payable balance that will appear on the end of quarter pro forma balance sheet.