Inventory, Purchases, and Cost of Goods Sold Budget April and May, 2018 April May Cost of goods sold Plus: Desired ending merchandise inventory Total merchandise inventory required Less: Beginning merchandise inventory Budgeted Purchases i Data Table Thumbtack Office Supply Balance Sheet March 31, 2018 Assets Current Assets $ Cash Accounts Receivable TIF 20,000 20,000 19,500 2,400 Merchandise Inventory Prepaid Insurance Total Current Assets Property, Plant, and Equipment: $ 61,900 Print Done Data Table Property, Plant, and Equipment: Equipment and Fixtures 52,000 (24,000) $ Less: Accumulated Depreciation 28,000 89,900 Total Assets 0 Liabilities Current Liabilities: Accounts Payable $ Salaries and Commissions Payable Total Liabilities Stockholders' Equity Common Stock, no par 10,000 7,000 . $ 17,000 18,000 54 900 Print Done A More Info - X a. c. d. Sales in April are expected to be $60,000. Thumbtack 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. Thumbtack maintains inventory of $12,000 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 $5,000. Sales commissions equal 5% of sales for that month. Other monthly expenses are as follows: Rent: $3,400 Depreciation: $800 Insurance: $300 Income tax: $2,500 Print Done