a. b. e jo Sales in April are expected to be $180,000. Vinning 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. Vinning 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 $8,000. Sales commissions equal 5% of sales for that month. Other monthly expenses are as follows: Rent: $3,400 Depreciation: $400 Insurance: $300 Income tax: $1,500 Vinning Office Supply Balance Sheet March 31, 2018 Assets Current Assets: Cash $ Accounts Receivable 24,000 20,000 35,500 2,500 Merchandise Inventory Prepaid Insurance Total Current Assets 82,000 Property, Plant, and Equipment: Equipment and Fixtures 34,000 (24,000) 10,000 Less: Accumulated Depreciation $ 92,000 Total Assets Liabilities Current Liabilities: Accounts Payable 14,000 4,533 Salaries and Commissions Payable Total Liabilities Stockholders' Equity $ 18,533 Requirement 1. Prepare Vinning's sales budget for April and May 2018. Round all amounts to the nearest dollar. Vinning Office Supply Sales Budget April and May, 2018 April Total budgeted sales $ 180,000 | $ May 183,600 Requirement 2. Prepare Vinning's inventory, purchases, and cost of goods sold budget for April and May. Vinning Supply Company Inventory, Purchases, and Cost of Goods Sold Budget April and May, 2018 April May Cost of goods sold 90000 35950 91800 35500 Plus: Desired ending merchandise inventory Total merchandise inventory required Less: Beginning merchandise inventory 35500 Budgeted Purchases