P22-42A (similar to) The budget committee of Ruler Office Supply has assembled the following data: (Click the icon to view the data.) Ruler Office Supply's March 31, 2018, balance sheet follows: (Click the icon to view the balance sheet.) Read the requirements. Requirement 1. Prepare Ruler's sales budget for April and May 2018. Round all amounts to the nearest dollar A Data Table - X More Info Ruler Office Supply Sales Budget April and May, 2018 April - X May a. Total budgeted sales C. Ruler Office Supply Balance Sheet March 31, 2018 Assets Current Assets Cash Accounts Receivable Merchandise Inventory Prepaid Insurance Total Current Assets Property, Plant, and Equipment: Equipment and Fixtures Less: Accumulated Depreciation Sales in April are expected to be $180,000. Ruler 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. Ruler maintains inventory of $7,000 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 $9,000. Sales commissions equal 5% of sales for that month. Other monthly expenses are as follows: Rent: $2,800 Depreciation: $300 Insurance: $200 Income tax: $2,300 15,000 19,000 29,500 1,400 Print Done $ 64,900 * Requirements 55,000 (10,000) $ 45,000 109,900 1. Prepare Ruler's sales budget for April and May 2018. Round all calculations to the nearest dollar. 2. Prepare Ruler's inventory, purchases, and cost of goods sold budget for April and May 3. Prepare Ruler's selling and administrative expense budget for April and May. 14,000 5,500 Total Assets Liabilities Current Liabilities: Accounts Payable $ Salaries and Commissions Payable Total Liabilities Stockholders' Equity Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ 19,500 Print Done 12,000 78,400 90.400 109,900 Print Done