Requirement 1. Prepare Paperclip's sales budget for April and May 2018. Round all amounts to the nearest dollar. Paperclip Office Supply Sales Budget April and May, 2018 April May Total budgeted sales Requirement 2. Prepare Paperclip's inventory, purchases, and cost of goods sold budget for April and May. Paperclip Supply Company Inventory, Purchases, and Cost of Goods Sold Budget April and May, 2018 April May Plus: Total merchandise inventory required Less: Budgeted Purchases Requirement 3. Prepare Paperclip's selling and administrative expense budget for April and May. Paperclip Office Supply Selling and Administrative Expense Budget April and May, 2018 April May Variable expenses: Fixed expenses: Total fixed expenses Total selling and administrative expenses a. b. C. Sales in April are expected to be $120,000. Paperclip 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. Paperclip 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 $6,000. Sales commissions equal 5% of sales for that month. Other monthly expenses are as follows: Rent: $3,400 Depreciation: $400 Insurance: $200 Income tax: $2,100 Paperclip Office Supply Balance Sheet March 31, 2018 Assets Current Assets: Cash Accounts Receivable 26,000 19,000 22,000 1,300 Merchandise Inventory Prepaid Insurance Total Current Assets $ 68,300 Property, Plant, and Equipment: Equipment and Fixtures 56,000 (10,000) Less: Accumulated Depreciation 46,000 $ 114,300 Total Assets Liabilities Current Liabilities: Accounts Payable $ 17,000 7,525 Salaries and Commissions Payable Total Liabilities $ 24,525 Stockholders' Equity Common Stock, no par 16,000 73,775 Retained Earnings Total Stockholders' Equity 89,775 $ 114,300 Total Liabilities and Stockholders' Equity Requirement 1. Prepare Paperclip's sales budget for April and May 2018. Round all amounts to the nearest dollar. Paperclip Office Supply Sales Budget April and May, 2018 April May Total budgeted sales Requirement 2. Prepare Paperclip's inventory, purchases, and cost of goods sold budget for April and May. Paperclip Supply Company Inventory, Purchases, and Cost of Goods Sold Budget April and May, 2018 April May Plus: Total merchandise inventory required Less: Budgeted Purchases Requirement 3. Prepare Paperclip's selling and administrative expense budget for April and May. Paperclip Office Supply Selling and Administrative Expense Budget April and May, 2018 April May Variable expenses: Fixed expenses: Total fixed expenses Total selling and administrative expenses a. b. C. Sales in April are expected to be $120,000. Paperclip 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. Paperclip 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 $6,000. Sales commissions equal 5% of sales for that month. Other monthly expenses are as follows: Rent: $3,400 Depreciation: $400 Insurance: $200 Income tax: $2,100 Paperclip Office Supply Balance Sheet March 31, 2018 Assets Current Assets: Cash Accounts Receivable 26,000 19,000 22,000 1,300 Merchandise Inventory Prepaid Insurance Total Current Assets $ 68,300 Property, Plant, and Equipment: Equipment and Fixtures 56,000 (10,000) Less: Accumulated Depreciation 46,000 $ 114,300 Total Assets Liabilities Current Liabilities: Accounts Payable $ 17,000 7,525 Salaries and Commissions Payable Total Liabilities $ 24,525 Stockholders' Equity Common Stock, no par 16,000 73,775 Retained Earnings Total Stockholders' Equity 89,775 $ 114,300 Total Liabilities and Stockholders' Equity
