The budget committee of Notebook Office Supply has assembled the following data: Click the icon to view the March balance sheet) (Cick the loon to view the data) You have prepared the following budgets for April and May Click the loon to view the sales budget) (Click the icon to view the inventory, purchases, and cost of goods sold budget.) (Click the con to view the noting and administrative expense budget) Requirements MY Requirement 1. Prepare the schedule of budgeted cash receipts from customers for April and May Notebook Office Supply Budgeted Cash Receipts from Customers April and May, 2014 April May Current month sales, 70% Prior months, 30% Total cash receipts 1. Prepare the schedule of budgeted cash receipts from oustomers for April and 2. Prepare the schedule of budgeted cash payments for purchases for April May 3. Prepare the schedule of budgeted cash payments for sing and administrative expenses for April and May. Assume 25% of the core for Salaries and Commissions Payabile is for commissions and 75% is for salaries. The March 31 balance will be paid in April 4. Prepare the cash budget for April and May Assume no francing took place Print Done Data Table Notebook Office Supply Balance Sheet March 31, 2014 Assets Current Assets: Cash $ Accounts Receivable Merchandise Inventory Prepaid Insurance Total Current Assets Property, Plant, and Equipment Equipment and Fixtures Less: Accumulated Depreciation Total Assets Liabilities 28,000 18,000 26,500 1,600 $ 74,100 56,000 (12,000) 44.000 $ 118,100 Current Liabilities: Accounts Payable Salaries and Commissions Payable $ 16,000 4,800 Total Liabilities $ 20,800 Stockholders' Equity Common Stock 13,000 84,300 Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 97,300 118,100 $ Print Done i More Info a. b. Sales in April are expected to be $140,000. Notebook 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. Cash receipts are 70% in the month of the sale and 30% in the month following the sale. Notebook 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. Purchases are paid 60% in the month of purchase and 40% in the month following the purchase. Monthly salaries amount to $5,000. Sales commissions equal 5% of sales for that month. Salaries and commissions are paid 40% in the month incurred and 60% in the following month. Other monthly expenses are as follows: Rent: $3,000, paid as incurred Depreciation: $600 Insurance: $300, expiration of prepaid amount Income tax: $1,900, paid as incurred C. d. . Print Done i Data Table Notebook Office Supply Sales Budget April and May, 2014 April May $ 140,000||$ 142,800 Total budgeted sales Print Done i Data Table Notebook Supply Company Inventory, Purchases, and Cost of Goods Sold Budget April and May, 2014 April May Cost of goods sold $ 70,000 $ 26,850 71,400 27,200 Plus: Desired ending merchandise inventory Total merchandise inventory required 96,850 26,500 98,600 26,850 Less: Beginning merchandise inventory $ 70,350 $ 71,750 Budgeted Purchases Print Done i Data Table Notebook Office Supply Selling and Administrative Expense Budget April and May, 2014 April May Variable expenses: $ 7,000 $ 7,140 Commissions Expense Fixed expenses: Salaries Expense Rent Expense Depreciation Expense 5,000 5,000 3,000 3,000 600 600 Insurance Expense 300 300 Total fixed expenses 8,900 8,900 Total selling and administrative expenses 15,900 $ 16,040 Print Done