Notebook's March 31, 2014, balance sheet follows: (Click the icon to view the balance sheet.) The budget committee of Notebook Office Supply has assembled the following data. (Click the icon to view the data.) Read the requirements. Requirement 1. Prepare Notebook's sales budget for April and May 2014. Round all amounts to the nearest $1. Notebook Office Supply Sales Budget April and May, 2014 April May Total budgeted sales Data Table 1 15,000 21,000 31,000 1,400 $ 68,400 Notebook Office Supply Balance Sheet March 31, 2014 Assets Current Assets Cash $ Accounts Receivable Merchandise Inventory Prepaid Insurance Total Current Assets Property, Plant, and Equipment: Equipment and Fixtures Less: Accumulated Depreciation Total Assets Liabilities Current Liabilities: Accounts Payable $ Salaries and Commissions Payable Total Liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 60,000 (18,000) 42,000 $ 110,400 14,000 5,950 $ 19,950 17.000 73,450 90,450 110,400 Print Done * More Info a. Sales in April are expected to be $160,000. Notebook 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. Cash receipts are 70% in the month of the sale and 30% in the month following the sale. b. Notebook maintains inventory of $11,000 plus 25% of the cost of goods sold budgeted for the following month. Cost of goods sold equal 50% of sales revenue. Purchases are paid 70% in the month of purchase and 30% in the month following the purchase. Monthly salaries amount to $5,000. Sales commissions equal 5% of sales for that month. Salaries and commissions are paid 30% in the month incurred and 70% in the following month. d. Other monthly expenses are as follows: Rent: $3,000, paid as incurred Depreciation: $400 Insurance: $200, expiration of prepaid amount Income tax: $2,100, paid as incurred c. Print Done i Requirements 1. Prepare Notebook's sales budget for April and May 2014. Round all amounts to the nearest $1. 2. Prepare Notebook's inventory, purchases, and cost of goods sold budget for April and May. 3. Prepare Notebook's selling and administrative expense budget for April and May. Print Done