Watercooler Office Supply's March 31, 2024, balance sheet follows: The budget committee of Watercooler Office Supply has (Click the icon to view the balance sheet.) assembled the following data: (Click the icon to view the data.) Read the requirements. Requirements 1. Prepare Watercooler's sales budget for April and May 2024. Round all calculations to the nearest dollar. 2. Prepare Watercooler's inventory, purchases, and cost of goods sold budget for April and May. 3. Prepare Watercooler's selling and administrative expense budget for April and May. Watercooler Office Supply Balance Sheet March 31, 2024 Assets Current Assets: \begin{tabular}{|l|c|} \hline Cash & $34,000 \\ \hline Accounts Receivable & 22,000 \\ \hline Merchandise Inventory & 37,500 \\ \hline Prepaid Insurance & 1,700 \\ \hline Total Current Assets & $95,200 \\ \cline { 1 - 2 } \end{tabular} Property, Plant, and Equipment: rotal Assets Liabilities Current Liabilities: a. Sales in April are expected to be $220,000. 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. b. Watercooler maintains inventory of $10,000 plus 25% of the cost of goods sold budgeted for the following month. Cost of goods sold equal 50% of sales revenue. c. Monthly salaries amount to $6,000. Sales commissions equal 5% of sales for that month. d. Other monthly expenses are as follows: - Rent: $2,200 - Depreciation: $700 - Insurance: $400 - Income tax: $1,800