10. Cube Office Supply's March 31, 2018, balance sheet follows: (Click the icon to view the balance sheet.) The budget committee of Cube Office Supply has assembled the following data: 2(Click the icon to view the data.) Read the requirements Requirement 1. Prepare Cube's sales budget for April and May 2018. Round all amounts to the nearest dollar. Cube Office Supply Sales Budget April and May, 2018 April May Total budgeted sales Requirement 2. Prepare Cube's inventory, purchases, and cost of goods sold budget for April and May. Cube Supply Company Inventory, Purchases, and Cost of Goods Sold Budget April and May, 2018 April May (1) Plus: (2) Total merchandise inventory required Less Budgeted Purchases Requirement 3. Prepare Cube's selling and administrative expense budget for April and May. Cube Office Supply Selling and Administrative Expense Budget April and May, 2018 May April Variable expenses: Fixed expenses: (5) (6) (7) (8) Total fixed expenses Total selling and administrative expenses Cube Office Supply Balance Sheet March 31, 2018 Assets Current Assets: Cash Accounts Receivable Merchandise Inventory 24,000 18,000 35,500 1,300 78,800 Prepaid Insurance Total Current Assets Property, Plant, and Equipment: Equipment and Fixtures 34,000 (18,000) 16,000 Less: Accumulated Depreciation 94,800 $ 12,000 4,800 Total Assets Liabilities Current Liabilities: Accounts Payable Salaries and Commissions Payable Total Liabilities Stockholders' Equity Common Stock, no par Retained Earnings Total Stockholders' Equity 16,800 12,000 66,000 78,000 $ Total Liabilities and Stockholders' Equity 94,800 2: More Info a. b. c. d. Sales in April are expected to be $180,000. Cube 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. Cube maintains inventory of $13,000 plus 25% of the cost of goods sold budgeted for the following month. Cost of goods sold equal 50% of sales revenue. Monthly salaries amount to $9,000. Sales commissions equal 5% of sales for that month. Other monthly expenses are as follows: Rent: $2,200 Depreciation: $600 Insurance: $400 Income tax: $2,500 3: Requirements 1. Prepare Cube's sales budget for April and May 2018. Round all calculations to the nearest dollar. 2. Prepare Cube's inventory, purchases, and cost of goods sold budget for April and May. 3. Prepare Cube's selling and administrative expense budget for April and May