Baird Books buys books and magazines directly from publishers and distributes them to grocery stores. The wholesaler expects to purchase the following inventory: Required purchases (on account) April $ 120,000 Required A Required B Baird Books' accountant prepared the following schedule of cash payments for inventory purchases. Baird Books' suppliers require that 95 percent of purchases on account be paid in the month of purchase; the remaining 5 percent are paid in the month following the month of purchase. Required a. Complete the schedule of cash payments for inventory purchases by filling in the missing amounts. b. Determine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the second quarter. Complete this question by entering your answers in the tabs below. Payment for current accounts payable Payment for previous accounts payable Total budgeted payments for inventory May $ 140,000 Complete the schedule of cash payments for inventory purchases by filling in the missing amounts. Schedule of Cash Payments for Inventory Purchases April May $ 114,000 11,000 $ 125,000 < Required A June $ 152,000 June Required B >
Baird Books buys books and magazines directly from publishers and distributes them to grocery stores. The wholesaler expects to purchase the following inventory: Required purchases (on account) April $ 120,000 Required A Required B Baird Books' accountant prepared the following schedule of cash payments for inventory purchases. Baird Books' suppliers require that 95 percent of purchases on account be paid in the month of purchase; the remaining 5 percent are paid in the month following the month of purchase. Required a. Complete the schedule of cash payments for inventory purchases by filling in the missing amounts. b. Determine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the second quarter. Complete this question by entering your answers in the tabs below. Payment for current accounts payable Payment for previous accounts payable Total budgeted payments for inventory May $ 140,000 Complete the schedule of cash payments for inventory purchases by filling in the missing amounts. Schedule of Cash Payments for Inventory Purchases April May $ 114,000 11,000 $ 125,000 < Required A June $ 152,000 June Required B >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Baird Books buys books and magazines directly from publishers and distributes them to grocery stores. The wholesaler expects to
purchase the following inventory:
Required purchases (on account)
April
$ 120,000
Required A Required B
Baird Books' accountant prepared the following schedule of cash payments for inventory purchases. Baird Books' suppliers require
that 95 percent of purchases on account be paid in the month of purchase; the remaining 5 percent are paid in the month following
the month of purchase.
Required
a. Complete the schedule of cash payments for inventory purchases by filling in the missing amounts.
b. Determine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the second quarter.
Complete this question by entering your answers in the tabs below.
Payment for current accounts payable
Payment for previous accounts payable
Total budgeted payments for inventory
May
$ 140,000
Complete the schedule of cash payments for inventory purchases by filling in the missing amounts.
Schedule of Cash Payments for Inventory Purchases
April
May
$ 114,000
11,000
$ 125,000
< Required A
June
$ 152,000
June
Required B >
Transcribed Image Text:Baird Books buys books and magazines directly from publishers and distributes them to grocery stores. The wholesaler expects to
purchase the following inventory:
Required purchases (on account)
April
$ 120,000
Required A
Baird Books' accountant prepared the following schedule of cash payments for inventory purchases. Baird Books' suppliers require
that 95 percent of purchases on account be paid in the month of purchase; the remaining 5 percent are paid in the month following
the month of purchase.
Required
a. Complete the schedule of cash payments for inventory purchases by filling in the missing amounts.
b. Determine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the second quarter.
Complete this question by entering your answers in the tabs below.
Required B
May
$ 140,000
< Required A
June
$ 152,000
Determine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the second
quarter.
Accounts payable
Required B >
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