Thumbtack Office Supply Balance Sheet March 31, 2018 Assets Current Assets: Cash $ 28,000 Accounts Receivable 20,000 Merchandise Inventory 27,000 2,500 Prepaid Insurance Total Current Assets $ 77,500 Property, Plant, and Equipment: Equipment and Fixtures 45,000 (28,000) Less: Accumulated Depreciation 17,000 $ 94,500 Total Assets Liabilities Liabilities Current Liabilities: Accounts Payable 17,000 3,200 Salaries and Commissions Payable Total Liabilities $ 20,200 Stockholders' Equity Common Stock, no par 21,000 53,300 Retained Earnings Total Stockholders' Equity 74,300 $ 94,500 Total Liabilities and Stockholders' Equity i More Info a. b. C. Sales in April are expected to be $160,000. Thumbtack 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. Thumbtack 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 $3,000. Sales commissions equal 5% of sales for that month. Other monthly expenses are as follows: Rent: $2,200 Depreciation: $300 Insurance: $200 Income tax: $2,000 d. Print Done Requirement 1. Prepare Thumbtack's sales budget for April and May 2018. Round all amounts to the nearest dollar. Thumbtack Office Supply Sales Budget April and May, 2018 April May Total budgeted sales Requirement 2. Prepare Thumbtack's inventory, purchases, and cost of goods sold budget for April and May. Thumbtack Supply Company Inventory, Purchases, and Cost of Goods Sold Budget April and May, 2018 April May Plus: Total merchandise inventory required Less: Less: Budgeted Purchases Requirement 3. Prepare Thumbtack's selling and administrative expense budget for April and May. Thumbtack 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