Printer Office Supply's March 31, 2018, balance sheet follows: E: (Click the icon to view the balance sheet.) The budget committee of Printer Office Supply has assembled the following data: (Click the icon to view the data.) Read the requirements. Requirement 1. Prepare Printer's sales budget for April and May 2018. Round all amounts to the nearest dollar. Printer Office Supply Sales Budget April and May, 2018 April May Total budgeted sales Requirement 2. Prepare Printer's inventory, purchases, and cost of goods sold budget for April and May. Printer Supply Company Inventory, Purchases, and cost of Goods Sold Budget April and May, 2018 April May Cost of goods sold Plus: Desired ending merchandise inventory Total merchandise inventory required Less: Beginning merchandise inventory Budgeted Purchases Requirement 3. Prepare Printer's selling and administrative expense budget for April and May. Printer Office Supply Selling and Administrative Expense Budget April and May, 2018 April May Variable expenses: Sales Fixed expenses: Salaries Expense Rent Expense Depreciation Expense Insurance Expense Total fixed expenses Total selling and administrative expenses i More Info x a. Sales in April are expected to be $140,000. Printer 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. Printer 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 $8,000. Sales commissions equal 5% of sales for that month. d. Other monthly expenses are as follows: Rent: $3,000 Depreciation: $800 Insurance: $400 Income tax: $2,500 Print Done Printer Office Supply Balance Sheet March 31, 2018 Assets Current Assets: Cash $ 23,000 Accounts Receivable 14.000 Merchandise Inventory 26.500 1,500 Prepaid Insurance Total Current Assets 65,000 Property, Plant, and Equipment: Equipment and Fixtures 52.000 (14,000) 38,000 Less: Accumulated Depreciation $ 103,000 Total Assets Liabilities Current Liabilities: Accounts Payable 18,000 Salaries and Commissions Payable 5.850 Total Liabilities 23,850 Stockholders' Equity Common Stock, no par 14,000 65,150 Retained Earnings Total Stockholders' Equity 79.150 Total Liabilities and Stockholders' Equity $ 103,000