prepare rulers sales budget for april and may 2014. round all amounts to nearest $1.

Question 1 Ruler's March 31, 2014, balance sheet follows: Ruler Office Supply Balance Sheet March 31, 2014 Assets Current Assets: 32,000 Cash 20,000 Accounts Receivable Merchandise Inventory 17,500 1,700 Prepaid Insurance Total Current Assets 71,200 Property, Plant, and Equipment: Equipment and Fixtures 55,000 (26,000) 29,000 Less: Accumulated Depreciation 100,200 Total Assets Liabilities Current Liabilities: Accounts Payable 10,000 3,600 Salaries and Commissions Payable Total Liabilities 13,600 Stockholders' Equity Common Stock 13,000 73,600 Retained Earnings 86,600 Total Stockholders' Equity 100,200 Total Liabilities and Stockholders' Equity The budget committe e of Ruler Office Supply has assembled the following data. Sales in April are expected to be $60,000. Ruler fore casts 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 80% in the month of the sale and 20% in the month following the sale. a. b. Ruler maintains inventory of $10,000 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 $7,000. Sales commissions equal 5% of sales for that month. Salaries and commissions are paid 70% in the month incurred and 30% in the following month C. d. Other monthly expenses are as follows: Rent: $2,800, paid as incurred Depreciation: $700 Insurance: $300, expiration of prepaid amount Income tax: $2,300, paid as incurred Requirements 1 Prepare Ruler's sales budget for April and May 2014. Round all amounts to the nearest $1. 2. Prepare Ruler's inventory, purchases, and cost of goods sold budget for April and May. Prepare Rule r's selling and administrative expense budget for April and May. 3