Ballard Office Supply's March 31, 2018, balance sheet follows:
BALLARD OFFICE SUPPLY
Balance Sheet
March 31, 2018

The budget committee of Ballard Office Supply has assembled the following data.
a. Sales in April are expected to be $160,000. Ballard forecasts that monthly sales will increase 2% over April sales in May. June's sales will increase by 4% over April sales. July sales will increase 20% over April sales.
b. Ballard maintains inventory of $7,000 plus 25% of the cost of goods sold budgeted for the following month. Cost of goods sold equal 50% of sales revenue.
c. Monthly salaries amount to $3,000. Sales commissions equal 5% of sales for that month.
d. Other monthly expenses are as follows:
€¢ Rent: $3,400
€¢ Depreciation: $800
€¢ Insurance: $300
€¢ Income tax: $1,500
Requirements
1. Prepare Ballard's sales budget for April and May 2018. Round all calculations to the nearest dollar.
2. Prepare Ballard's inventory, purchases, and cost of goods sold budget for April and May.
3. Prepare Ballard's selling and administrative expense budget for April and May?

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Assets Current Assets: $ 35,000 Cash Accounts Receivable 14,000 Merchandise Inventory 27,000 1,200 Prepaid Insurance $ 77,200 Total Current Assets Property, Plant, and Equipment: Equipment and Fixtures 35,000 Less: Accumulated Depreciation 17,000 (18,000) $ 94,200 Total Assets Liabilities Current Liabilities: $ 19,000 Accounts Payable Salaries and Commissions Payable 3,325 $ 22,325 Total Liabilities Stockholders' Equity Common Stock, no par 18,000 Retained Earnings 53,875 Total Stockholders' Equity 71,875 $ 94,200 Total Liabilities and Stockholders' Equity