Clipboard Office Supply€™s March 31, 2012, budgeted balance sheet follows:

The budget committee of Clipboard Office Supply has assembled the following data. Sales in April were $48,000. You forecast that monthly sales will increase 5% over April€™s sales in May. June€™s sales will increase 10% over April€™s sales. July€™s sales will increase 15% over April€™s sales. Collections are 80% in the month of sale and 20% in the month following sale.
Clipboard maintains inventory of $9,000 plus 25% of the COGS budgeted for the following month. COGS = 50% of sales revenue. Purchases are paid 40% in the month of purchase and 60% in the month following the purchase. Monthly salaries amount to $6,000. Sales commissions equal 5% of sales for that month. Salaries and commissions are paid 60% in the month incurred and 40% in the following month. Other monthly expenses are as follows:

Requirements
1. Prepare Clipboard€™s sales budget for April and May, 2012.
2. Prepare Clipboard€™s inventory, purchases, and cost of goods sold budget for April and May.
3. Prepare Clipboard€™s operating expenses budget for April and May.
4. Prepare Clipboard€™s budgeted income statement for April andMay.

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CLIPBOARD OFFICE SUPPLY Budgeted Balance Sheet March 31, 2012 Liabilities Assets Current liabilitics: Current assets: $28,000 $10,500 Cash Accounts payable 1,200 11,500 Accounts receivable Salary and commissions payable 15,000 $11,700 Inventory Total liabilities 1,000 Prepaid insurance $55,500 Stockholders' Equity Total current assets 25,000 Plant assets: Common stock Equipment and fixtures 55,000 Retained earnings 53,800 Less: Accumulated deprociation Total plant assets $78,800 20,000 Total stockholders' equity $35,000 Total assets $90,500 Total liabilities and stockholders' equity $90,500