Watercooler Office Supply's March 31, 2018, balance sheet follows: Click the icon to view the balance sheet) Requirement 1. Prepare Watercooler's sales budget for April and May 2018. Round all amounts to the nearest dollar Watercooler Office Supply Sales Budget April and May, 2018 April May Total budgeted sales 140000 Requirement 2. Prepare Watercooler's inventory, purchases and cost of goods sold budget for April and May Watercooler Supply Company Inventory, Purchases, and Cost of Goods Sold Budget April and May, 2018 April May Cost of goods sold Plus Desired ending merchandise inventory Total merchandise inventory required Less Beginning merchandise inventory Budgeted Purchases Requirement 3. Prepare Watercooler's selling and administrative expense budget for April and May Watercooler Office Supply Selling and Administrative Expense Budget April and May, 2018 April May Variable expenses: Commissions Expense Requirement 2. Prepare Watercooler's inventory, purchases, and cost of goods sold budget for April a Watercooler Supply Company Inventory, Purchases, and Cost of Goods Sold Budget April and May, 2018 April May Cost of goods sold Plus Desired ending merchandise inventory Total merchandise inventory required Less Beginning merchandise inventory Budgeted Purchases Requirement 3. Prepare Watercooler's selling and administrative expense budget for April and May. Watercooler Office Supply Selling and Administrative Expense Budget April and May, 2018 April May o Variable expenses: Commissions Expense Fixed expenses: Salaries Expense Rent Expense Depreciation Expense Insurance Expense Total fixed expenses Total selling and administrative expenses More info - a. b. CH d. Sales in April are expected to be $140.000. Watercooler 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 Watercooler maintains inventory of $12,000 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 $4,000. Sales commissions equal 5% of sales for that month. Other monthly expenses are as follows: Rent: $3,400 Depreciation: $300 - Insurance: $200 Income tax: $2.500 Print Done Data table Balance Sheet March 31, 2018 Assets Current Assets Cash $ 26,000 21,000 29.500 1,300 Accounts Receivable Merchandise Inventory Prepaid Insurance Total Current Assets Property Plant, and Equipment. Equipment and Fixtures Less. Accumulated Depreciation $ 77 800 60,000 (20.000) 40.000 S 117,800 Total Assets Liabilities Current Liabilities 5 Accounts Payable Salaries and Commissions Payable 20.000 5.250 Total Liabilities S 25,250 Stockholders' Equity Common Stock, no par 10.000 82.550 Retained Earnings Total Stockholders' Equity 92,550 $ 117,800 Total Liabilities and Stockholders' Equity Print Done