Solomon, Inc. sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July. Budgeted cost of goods sold April $74,000 Solomon had a beginning Inventory balance of $3,300 on April 1 and a beginning balance in accounts payable of $14,100. The company desires to maintain an ending Inventory balance equal to 10 percent of the next period's cost of goods sold. Solomon 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 a. Prepare an Inventory purchases budget for April, May, and June. b. Determine the amount of ending Inventory Solomon 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 Solomon will report on the end-of-quarter pro forma balance sheet. Complete this question by entering your answers in the tabs below. Inventory needed Required A Required B Required C Prepare an inventory purchases budget for April, May, and June. Inventory Purchases Budget April Budgeted cost of goods sold Required purchases (on account) June May $84,800 $94,000 $ $ Required D 74,000 $ 74,000 May June 84,000 $ 94,000 84,000 July $100,000 94,000 74,000 $ 84,000 $ 94,000
Solomon, Inc. sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July. Budgeted cost of goods sold April $74,000 Solomon had a beginning Inventory balance of $3,300 on April 1 and a beginning balance in accounts payable of $14,100. The company desires to maintain an ending Inventory balance equal to 10 percent of the next period's cost of goods sold. Solomon 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 a. Prepare an Inventory purchases budget for April, May, and June. b. Determine the amount of ending Inventory Solomon 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 Solomon will report on the end-of-quarter pro forma balance sheet. Complete this question by entering your answers in the tabs below. Inventory needed Required A Required B Required C Prepare an inventory purchases budget for April, May, and June. Inventory Purchases Budget April Budgeted cost of goods sold Required purchases (on account) June May $84,800 $94,000 $ $ Required D 74,000 $ 74,000 May June 84,000 $ 94,000 84,000 July $100,000 94,000 74,000 $ 84,000 $ 94,000
Chapter4: Financial Planning And Forecasting
Section: Chapter Questions
Problem 5P
Related questions
Question
Please answer all subparts because i cant post last sunlart separately because it is interlinked thanku
Transcribed Image Text:Solomon, Inc. sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May,
June, and July.
Budgeted cost of goods sold
Solomon had a beginning Inventory balance of $3,300 on April 1 and a beginning balance in accounts payable of $14,100. The
company desires to maintain an ending Inventory balance equal to 10 percent of the next period's cost of goods sold. Solomon 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
a. Prepare an Inventory purchases budget for April, May, and June.
b. Determine the amount of ending Inventory Solomon 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 Solomon will report on the end-of-quarter pro forma balance sheet.
Complete this question by entering your answers in the tabs below.
Required A Required B Required C
April
May
June
$74,000 $84,000 $94,000
Inventory needed
Prepare an inventory purchases budget for April, May, and June.
Inventory Purchases Budget
April
May
Budgeted cost of goods sold
74,000 $ 84.000 $ 94,000
Required purchases (on account)
Required D
$
74,000
84,000
$ 74,000 $ 84,000
< Required A
June
94,000
July
$100,000
$ 94,000
Required B >
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning