Cube Office Supply Balance Sheet March 31, 2018 Assets Current Assets: Cash $ 28,000 Accounts Receivable 15,000 Merchandise Inventory 23,000 2,000 Prepaid Insurance Total Current Assets $ 68,000 Property, Plant, and Equipment: Equipment and Fixtures 45,000 (26,000) Less: Accumulated Depreciation 19,000 Total Assets $ 87,000 LILLA Liabilities Current Liabilities: Accounts Payable $ 17.900 Salaries and Commissions Payable 4,650 Total Liabilities $ 21,650 Stockholders' Equity Common Stock, no par 10,000 55,350 Retained Earnings Total Stockholders' Equity 65,350 Total Liabilities and Stockholders' Equity $ 87,000 More Info a. c. Sales in April are expected to be $80,000. 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. b. 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 $4,000. Sales commissions equal 5% of sales for that month. d. Other monthly expenses are as follows: Rent: $2,600 Depreciation: $600 Insurance: $200 Income tax: $1,600 . 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 May April 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 Plus: 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 April May Variable expenses: Fixed expenses: Total fixed expenses Total selling and administrative expenses