The budget committee of printer office supply has assembled the following data:

Question 2: The budget committee of Printer Office Supply has assembled the following data: Printer Office Supply Balance Sheet March 31, 2014 Liabilities Current Assets Cash Accounts Receivable Merchandise Inventory Current Liabilities: Accounts Payable S 34,000 15,000 19,500 1,400 16.250 4,725 Salaries and Commissions Payable Total Liabilities $ 20,975 $ 69,900 Stockholders' Equity Prepaid Insurance Total Current Assets Property, Plant, and Equipment: Equipment and Fixtures Common Stock 17,000 72,925 61,000 (20,000) 41,000 Retained Earnings Total Stockholders' Equity 89.925 Less: Accumulated Depreciation Total Assets $ 110,900 $ 110,900 Total Liabilities and Stockholders' Equity More Info a. Sales in April are expected to be $100,000. 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. Cash receipts are 80% in the month of the sale and 20% in the month following the sale. b. Printer 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. Purchases are paid 60% in the month of purchase and 40% in the month following the purchase. C. Monthly salaries amount to $3,000. Sales commissions equal 5% of sales for that month. Salaries and commissions are paid 30% in the month incurred and 70% in the following month. d. Other monthly expenses are as follows: Rent: $2,200, paid as incurred Depreciation: $300 Insurance: $100, expiration of prepaid amount Income tax: $1,600, paid as incurred You have prepared the following budgets for April and May Printer Office Supply Sales Budget April and May, 2014 April $ 100,000 $ Total budgeted sales May 102,000 Printer Supply Company Inventory, Purchases, and Cost of Goods Sold Budget April and May, 2014 April Cost of goods sold 50,000 $ Plus: Desired ending merchandise inventory 19,750 Total merchandise inventory required 69,750 Less: Beginning merchandise inventory 19,500 50,250 $ Budgeted Purchases May 51,000 20,000 71,000 19,750 51,250 Printer Office Supply Selling and Administrative Expense Budget April and May, 2014 April May Variable expenses: 5,000 $ 5,100 Commissions Expense Fixed expenses: Salaries Expense Rent Expense Depreciation Expense 3,000 2,200 3,000 2,200 300 300 100 Insurance Expense 100 Total fixed expenses 5,600 5,600 10,600$ 10,700 Total selling and administrative expenses Requirements: 1. 2. 3. Prepare the schedule of budgeted cash receipts from customers for April and May. Prepare the schedule of budgeted cash payments for purchases for April and May. Prepare the schedule of budgeted cash payments for selling and administrative expenses for April and May. Assume 25% of the accrual for Salaries and Commissions Payable is for commissions and 75% is for salaries. The March 31 balance will be paid in April. Prepare the cash budget for April and May. Assume no financing took place. 4