Franklin, Incorporated sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July April $ 72,000 May $82,000 June $ 92,000 July $ 98,000 Budgeted coat of goods sold Franklin had a beginning inventory balance of $3,000 on April 1 and a beginning balance in accounts payable of $15,800. The company desires to maintain an ending inventory balance equal to 20 percent of the next period's cost of goods sold, Franklin makes all purchases on account. The company pays 70 percent of accounts payable in the month of purchase and the remaining 30 percent in the month following purchase. Required Prepare an inventory purchases budget for April, May, and June. Determine the amount of ending inventory Franklin will report on the end-of-quarter pro forma balance sheet. Prepare a schedule of cash payments for inventory for April, May, and June. the end of quarter pro forma balance sheet
Franklin, Incorporated sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July April $ 72,000 May $82,000 June $ 92,000 July $ 98,000 Budgeted coat of goods sold Franklin had a beginning inventory balance of $3,000 on April 1 and a beginning balance in accounts payable of $15,800. The company desires to maintain an ending inventory balance equal to 20 percent of the next period's cost of goods sold, Franklin makes all purchases on account. The company pays 70 percent of accounts payable in the month of purchase and the remaining 30 percent in the month following purchase. Required Prepare an inventory purchases budget for April, May, and June. Determine the amount of ending inventory Franklin will report on the end-of-quarter pro forma balance sheet. Prepare a schedule of cash payments for inventory for April, May, and June. the end of quarter pro forma balance sheet
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Franklin, Incorporated sells fireworks. The company's marketing director developed the following cost of goods sold budget for April,
May, June, and July
April
$ 72,000
May
$82,000
Budgeted cost of goods sold
Franklin had a beginning inventory balance of $3,000 on April 1 and a beginning balance in accounts payable of $15,800. The
company desires to maintain an ending inventory balance equal to 20 percent of the next period's cost of goods sold. Franklin makes
all purchases on account. The company pays 70 percent of accounts payable in the month of purchase and the remaining 30 percent
in the month following purchase.
Inventory needed
Required purchases (on account)
Required
Prepare an inventory purchases budget for April, May, and June.
Determine the amount of ending inventory Franklin will report on the end-of-quarter pro forma balance sheet.
Prepare a schedule of cash payments for inventory for April, May, and June.
Determine the balance in accounts payable Franklin will report on the end-of-quarter pro forma balance sheet.
Complete this question by entering your answers in the tabs below..
Prepare an inventory purchases budget for April, May, and June.
Inventory Purchases Budget
Budgeted cost of goods sold
June
$ 92,000
$
April
May
June
$ 72,000 $ 82,000 $92.000
72,000
82,000 92,000
July
$ 98,000
72,000 $82,000 $92.000
Required A
Required B >
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