Walton Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget. Walton's policy is to maintain an ending inventory balance equal to 20 percent of the following month's cost of goods sold. April's budgeted cost of goods sold is $78,000. Required a. Complete the inventory purchases budget by filling in the missing amounts. b. Determine the amount of cost of goods sold the company will report on its first quarter pro forma income statement. c. Determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first quarter.
Walton Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget. Walton's policy is to maintain an ending inventory balance equal to 20 percent of the following month's cost of goods sold. April's budgeted cost of goods sold is $78,000. Required a. Complete the inventory purchases budget by filling in the missing amounts. b. Determine the amount of cost of goods sold the company will report on its first quarter pro forma income statement. c. Determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first quarter.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Walton Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory
purchases budget. Walton's policy is to maintain an ending inventory balance equal to 20 percent of the following month's cost of
goods sold. April's budgeted cost of goods sold is $78,000.
Required
a. Complete the inventory purchases budget by filling in the missing amounts.
b. Determine the amount of cost of goods sold the company will report on its first quarter pro forma income statement.
c. Determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first quarter.
Complete this question by entering your answers in the tabs below.
Req A
Req B and C
Determine the amount of cost of goods sold the company will report on its first quarter pro forma income statement.
Determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first
quarter.
b.
Cost of goods sold
C.
Ending inventory
< Req A
Reg B and C >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdcd289bd-54ab-4e8a-962a-c9351c6f586f%2F4710546a-5250-4c07-a22a-709a0e140e28%2F12g81b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Walton Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory
purchases budget. Walton's policy is to maintain an ending inventory balance equal to 20 percent of the following month's cost of
goods sold. April's budgeted cost of goods sold is $78,000.
Required
a. Complete the inventory purchases budget by filling in the missing amounts.
b. Determine the amount of cost of goods sold the company will report on its first quarter pro forma income statement.
c. Determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first quarter.
Complete this question by entering your answers in the tabs below.
Req A
Req B and C
Determine the amount of cost of goods sold the company will report on its first quarter pro forma income statement.
Determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first
quarter.
b.
Cost of goods sold
C.
Ending inventory
< Req A
Reg B and C >
![Homework
Saved
Help
Walton Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory
purchases budget. Walton's policy is to maintain an ending inventory balance equal to 20 percent of the following month's cost of
goods sold. April's budgeted cost of goods sold is $78,000.
Required
a. Complete the inventory purchases budget by filling in the missing amounts.
b. Determine the amount of cost of goods sold the company will report on its first quarter pro forma income statement.
c. Determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first quarter.
Complete this question by entering your answers in the tabs below.
Req A
Req B and C
Complete the inventory purchases budget by filling in the missing amounts.
Inventory Purchases Budget
January
February
March
Budgeted cost of goods sold
54,000
$
58,000 $
64,000
11,600
Inventory needed
65,600
10,800
Required purchases (on account)
2$
54,800
<Reg A
Req B and C
>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdcd289bd-54ab-4e8a-962a-c9351c6f586f%2F4710546a-5250-4c07-a22a-709a0e140e28%2F9vmtllp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Homework
Saved
Help
Walton Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory
purchases budget. Walton's policy is to maintain an ending inventory balance equal to 20 percent of the following month's cost of
goods sold. April's budgeted cost of goods sold is $78,000.
Required
a. Complete the inventory purchases budget by filling in the missing amounts.
b. Determine the amount of cost of goods sold the company will report on its first quarter pro forma income statement.
c. Determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first quarter.
Complete this question by entering your answers in the tabs below.
Req A
Req B and C
Complete the inventory purchases budget by filling in the missing amounts.
Inventory Purchases Budget
January
February
March
Budgeted cost of goods sold
54,000
$
58,000 $
64,000
11,600
Inventory needed
65,600
10,800
Required purchases (on account)
2$
54,800
<Reg A
Req B and C
>
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