Thumbtack Office Supply's March 31, 2018, balance sheet follows: E: (Click the icon to view the balance sheet.) The budget committee of Thumbtack Office Supply has assembled the following data: (Click the icon to view the data.) Read the requirements. Requirement 1. Prepare Thumbtack's sales budget for April and May 2018. Round all amounts to the nearest dollar. Data Table More Info Thumbtack Office Supply Sales Budget April and May, 2018 April a. Thumbtack Office Supply Balance Sheet May Sales in April are expected to be $220,000. 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 $9,000 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 $9,000. Sales commissions equal 5% of sales for that March 31, 2018 b. Total budgeted sales Assets c. Current Assets month d. $ 24,000 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 20,000 36,500 2,500 Other monthly expenses are as follows: Rent: $2,600 Depreciation: $300 Insurance: $200 Income tax: $1,600 Cash Accounts Receivable Merchandise Inventory Prepaid Insurance Total Current Assets Property, Plant, and Equipment: Equipment and Fixtures Less: Accumulated Depreciation $ 83,000 Plus Total merchandise inventory required Print Done 30,000 (26,000) 4.000 Less $ 87,000 Budgeted Purchases Total Assets Liabilities Current Liabilities: Accounts Payable $ 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 11,000 3.700 $ 14,700 Salaries and Commissions Payable Total Liabilities Stockholders' Equity Common Stock, no par Variable expenses: 23,000 49,300 Fixed expenses: Retained Earnings Total Stockholders' Equity 72,300 Total Liabilities and Stockholders' Equity 87,000 Thumbtack Office Supply's March 31, 2018, balance sheet follows: (Click the icon to view the balance sheet.) The budget committee of Thumbtack Office Supply has assembled the following data: (Click the icon to view the data.) Read the requirements Data Table x More Info 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 a. Thumbtack Office Supply Balance Sheet March 31, 2018 b. Assets c. Plus Total merchandise inventory required Sales in April are expected to be $220,000. 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 $9,000 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 $9,000. Sales commissions equal 5% of sales for that month. Other monthly expenses are as follows: Rent: $2,600 Depreciation: $300 Insurance: $200 Income tax: $1,600 Current Assets: d. Cash $ 24,000 Less: 20,000 Budgeted Purchases Accounts Receivable Merchandise Inventory Prepaid Insurance 36,500 2,500 Total Current Assets $ 83,000 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 Print 30.000 Property, Plant, and Equipment: Equipment and Fixtures Less: Accumulated Depreciation Done (26,000) 4,000 $ Variable expenses: 87,000 Total Assets Liabilities Fixed expenses: 11,000 3,700 $ 14,700 Current Liabilities: Accounts Payable $ Salaries and Commissions Payable Total Liabilities Stockholders' Equity Common Stock, no par Retained Earnings Total Stockholders' Equity Total fixed expenses 23,000 49,300 Total selling and administrative expenses 72,300 $ 87,000 Total Liabilities and Stockholders' Equity
