Refer to your results from P22-30B, P22-31B, and P22-32B. Assume the following changes to the original facts:
a. Collections of receivables are 60% in the month of sale, 35% in the month following the sale, and 5% are never collected. Assume the March receivables balance is net of the allowance for uncollectibles.
b. Minimum required inventory levels are $5,000 plus 40% of next month’s COGS.
c. Purchases of inventory will be paid 30% in the month of purchase, 70% in the month following purchase.
d. Salaries and commissions are paid 40% in the month incurred and 60% in the following month.
Requirements
1. Prepare Clipboard’s revised sales budget for April and May. Round all calculations to the nearest dollar.
2. Prepare Clipboard’s revised inventory, purchases, and cost of goods sold budget for April and May.
3. Prepare Clipboard’s revised operating expenses budget for April and May.
4. Prepare Clipboard’s revised budgeted income statement for April and May.