Mudbug International Has Budgeted Inventory Purchases as Follows The Budget Assumes That 50% of a Given Month's Purchases

question 14

Essay

Mudbug International has budgeted inventory purchases as follows:
$$\begin{array} { | l | r | r | r | } \hline & \text { Apr } & \text { May } & \text { Jun } \\\hline \text { Budgeted purchases } & \$ 80,000 & \$ 75,000 & \$ 70,000 \\\hline\end{array}$$
The budget assumes that 50% of a given month's purchases are paid in the month of purchase, and the remaining 50% is paid out one month later. Accounts payable to inventory suppliers at March 31 was $38,000. Please use the format below and prepare the budgeted cash payments for inventory purchases.
$$\begin{array} { | l | l | l | l | } \hline \text { Budgeted Cash Payments for Inventory } & \text { Apr } & \text { May } & \text { Jun } \\ \text { Purchases } & & & \\\hline 50 \% \text { of previous month purchases } & & & \\\hline 50 \% \text { of current month purchases } & & & \\\hline \text { Total cash payments } & & & \\\hline\end{array}$$

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