RECOMMENDED!!Franklin, Inc. sells fireworks. The company’s marketing director

  

Franklin, Inc. sells fireworks. The company’s marketing director developed the following cost of goods sold budget for April, May, June, and July.Budgeted cost of goods soldApril $68,000May $78,000June $88,000July $94,000Franklin had a beginning inventory balance of $4,100 on April 1 and a beginning balance in accounts payable of $15,700. The company desires to maintain an ending inventory balance equal to 15 percent of the next period’s cost of goods sold. Franklin makes all purchases on account. The company pays 60 percent of accounts payable in the month of purchase and the remaining 40 percent in the month following purchase. Requiredschedule 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.

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