Stuart 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) Stuart Books' accountant prepared the following schedule of cash payments for inventory purchases. Stuart 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 April $ 106,000 May $ 126,000 Complete this question by or June $ 138,000 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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Stuart 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)
Stuart Books' accountant prepared the following schedule of cash payments for inventory purchases. Stuart 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.
Required A
Complete this question by entering your answers in the tabs below.
Required B
April
$ 106,000
Payment for current accounts payable
Payment for previous accounts payable
Total budgeted payments for inventory
$
Complete the schedule of cash payments for inventory purchases by filling in the missing amounts.
Schedule of Cash Payments for Inventory Purchases
April
May
$
May
$ 126,000
100,700
8,000
108,700
Required A
June+
June
$ 138,000
Required B >
Transcribed Image Text:Stuart 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) Stuart Books' accountant prepared the following schedule of cash payments for inventory purchases. Stuart 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. Required A Complete this question by entering your answers in the tabs below. Required B April $ 106,000 Payment for current accounts payable Payment for previous accounts payable Total budgeted payments for inventory $ Complete the schedule of cash payments for inventory purchases by filling in the missing amounts. Schedule of Cash Payments for Inventory Purchases April May $ May $ 126,000 100,700 8,000 108,700 Required A June+ June $ 138,000 Required B >
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