More Info Requirement 1. Prepare Cube's sales budget for April and May 2018. Round all amounts to the nearest d Cube Office Supply Sales Budget April and May, 2018 April May Total budgeted sales $ 120,000 $ 122,400 a. Sales in April are expected to be $120,000. 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 $9,000 plus 25% of the cost of goods sold budgeted for the following month. Cost of goods sold equal 50% of sales revenue. c. Monthly salaries amount to $3,000. Sales commissions equal 5% of sales for that month. d. Other monthly expenses are as follows: Rent: $3,400 Depreciation: $600 Insurance: $400 Income tax: $1,500 Print Done 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 Cost of goods sold 60,000 $ 61,200 Plus: Desired ending merchandise inventory 24,300 24,600 Total merchandise inventory required 84,300 85,800 Less: Beginning merchandise inventory 24,000 24,300 Budgeted Purchases 60,300 $ 61,500 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: 6 Data Table Fixed expenses: 63,400 Total fixed expenses Total selling and administrative expenses Cube Office Supply Balance Sheet March 31, 2018 Assets Current Assets: Cash $ 18,000 Accounts Receivable 19,000 Merchandise Inventory 24,000 Prepaid Insurance 2,400 Total Current Assets $ Property, Plant, and Equipment: Equipment and Fixtures 55,000 Less: Accumulated Depreciation (26,000) Total Assets $ Liabilities Current Liabilities: Accounts Payable $ 14,000 Salaries and Commissions Payable 3,100 Total Liabilities $ Stockholders' Equity Common Stock, no par 14,000 Retained Earnings 61,300 Total Stockholders' Equity Total Liabilities and Stockholders' $ Equity 29,000 92,400 17,100 75,300 92,400