Adams Books buys books and magazines directly from publishers and distributes them to grocery stores. The wholesaler expects topurchase the following inventory.April$ 105,000Required purchases (on account)Adams Books' accountant prepared the following schedule of cash payments for inventory purchases. Adams Books' suppliers requirethat 90 percent of purchases on account be paid in the month of purchase, the remaining 10 percent are paid in the month followingthe month of purchaseRequired ARequireda. 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 BHay$125,000Payment for current accounts payablePayment for previous accounts payableTotal budgeted payments for inventoryComplete the schedule of cash payments for inventory purchases by filling in the missing amounts.Schedule of Cash Payments for Inventory PurchasesAprilMayS 94.50010,000S 104.500June$ 137,000JuneRequired B > Adams Books buys books and magazines directly from publishers and distributes them to grocery stores. The wholesaler expects topurchase the following inventory.April$ 105,000Required purchases (on account)$ 125,000Adams Books' accountant prepared the following schedule of cash payments for inventory purchases. Adams Books' suppliers requirethat 90 percent of purchases on account be paid in the month of purchase, the remaining 10 percent are paid in the month followingthe month of purchaseRequireda. Complete the schedule of cash payments for inventory purchases by filling in the missing amountsb. Determine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the second quarterComplete this question by entering your answers in the tabs below.June$ 137,000Required A Required BDetermine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the secondquarter.Accounts payable< Required ARestonest

A Schedule of Cash Payments for Inventory Purchases is a financial projection or plan that describes…

Answered: Adams Books buys books and magazines…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 18E

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