The budget committee of Vinning Office Supply has assembled the following data: (Click the icon to view the March balance sheet.) A(Click the icon to view the data.) You have prepared the following budgets for April and May: (Click the icon to view the sales budget.) (Click the icon to view the inventory, purchases, and cost of goods sold budget.) (Click the icon to view the selling and administrative expense budget.) Read the requirements Requirement 1. Prepare the schedule of budgeted cash receipts from customers for April and May. Vinning Office Supply Budgeted Cash Receipts from Customers April and May, 2014 April May Current month sales, 60% Prior month sales, 40% Total cash receipts Requirement 2. Prepare the schedule of budgeted cash payments for purchases for April and May. Vinning Office Supply Budgeted Cash Payments for Purchases April and May, 2014 April May Enter any number in the edit fields and then continue to the next question. ? d - X i Data Table Vinning Office Supply Sales Budget April and May, 2014 April $ Total budgeted sales 120,000 $ May 122,400 nd Print Done i Data Table -X Vinning Supply Company Inventory, Purchases, and Cost of Goods Sold Budget April and May, 2014 April May $ 60,000 $ 24,300 61,200 24,600 Cost of goods sold Plus: Desired ending merchandise inventory Total merchandise inventory required Less: Beginning merchandise inventory 84,300 24,000 85,800 24,300 $ 60,300 $ 61,500 Budgeted Purchases Print Done i Data Table -X ne Vinning Office Supply Selling and Administrative Expense Budget April and May, 2014 April May $ 6,000 $ 6,120 Variable expenses: Commissions Expense Fixed expenses: Salaries Expense Rent Expense Depreciation Expense Insurance Expense 6,000 2,000 700 6,000 2,000 700 ad 200 200 Total fixed expenses 8,900 8,900 $ 15,020 Total selling and administrative expenses 14,900 $ Print Done (Click the icon to view the selling and a i Requirements x ners for 1. Prepare the schedule of budgeted cash receipts from customers for April and May 2. Prepare the schedule of budgeted cash payments for purchases for April and May. 3. 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. 4. Prepare the cash budget for April and May. Assume no financing took place. ases foll Print Done Vinning 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 15,000 32,000 24,000 1,500 $ 72,500 56,000 (26,000) 30,000 $ 102,500 Total Assets Liabilities Current Liabilities: Accounts Payable $ 18,000 Print Done blloy i Data Table 24,000 1,500 $ 72,500 Merchandise Inventory Prepaid Insurance Total Current Assets Property, Plant, and Equipment: Equipment and Fixtures Less: Accumulated Depreciation mc 56,000 (26,000) 30,000 $ 102,500 M M $ 18,000 3,000 Total Assets Liabilities Current Liabilities: Accounts Payable Salaries and Commissions Payable Total Liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ 21,000 orp 16,000 65,500 81,500 102,500 $ que Print Done Requirement 1. Prepare the schedule of budgeted cash receipts from customers for April and May. Vinning Office Supply Budgeted Cash Receipts from Customers April and May, 2014 April May Current month sales, 60% Prior month sales, 40% Total cash receipts Requirement 2. Prepare the schedule of budgeted cash payments for purchases for April and May. Vinning Office Supply Budgeted Cash Payments for Selling and Administrative Expenses April and May, 2014 April May Variable expenses: 30% of last month's Commission Expense 70% of current month's Commission Expense Total payments for variable expenses Fixed expenses 30% of last month's Salaries Expense 70% of current month's Salaries Expense Rent expense Total payments for fixed expenses Total payments for S and A expenses Requirement 4. Prepare the cash budget for April and May. Assume no financing took place. Vinning Office Supply Cash Budget April and May, 2014 April May Beginning cash balance Cash receipts from customers Cash available Cash payments: Purchases of inventory Selling and administrative expenses Payments for income taxes Total cash payments Ending cash balance -X i P. More Info a. Sales in April are expected to be $120,000. Vinning 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 60% in the month of the sale and 40% in the month following the sale. b. Vinning 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. C. Monthly salaries amount to $6,000. 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. d. Other monthly expenses are as follows: Rent: $2,000, paid as incurred Depreciation: $700 Insurance: $200, expiration of prepaid amount Income tax: $1,600, paid as incurred Print Done