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1. Prepare Ballard's Sales Budget for June and July.
2. Prepare Inventory, Purchases, and Costs of Goods Sold Budget.
3. Prepare the Selling & Administrative Budget for June and July.
4. Prepare the Budgeted Income Statement for June and July.

Budgeting Case study The budget committee of Ballard Office Supply has assembled the following data. a. Sales in June are expected to be $160,000. Ballard forecasts that monthly sales will increase 2% over June sales in July. August's sales will increase by 4% over June sales. September sales will increase 20% over June sales. b. Ballard 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. c. Monthly salaries amount to $3000. Sale commissions equal 5% of sales for that month. d. Other monthly expenses are as follows: - Rent: $3,400 - Depreciation: $800 - Insurance: $300 - Income tax: $1,500