Thumbtack€™s March 31, 2012, budgeted balance sheet follows:

The budget committee of Thumbtack Office Supply has assembled the following data.
a. Sales in April were $40,000. You forecast that monthly sales will increase 2% over April€™s sales in May. June€™s sales will increase 4% over April€™s sales. July€™s sales will increase 20% over April€™s sales.
b. Collections are 80% in the month of sale and 20% in the month following sale. Thumbtack maintains inventory of $11,000 plus 25% of the COGS budgeted for the following month. COGS = 50% of sales revenue. Purchases are paid 30% in the month of purchase and 70% in the month following the purchase.
c. Monthly salaries amount to $7,000. Sales commissions equal 5% of sales for that month. Salaries and commissions are paid 30% in the month incurred and 70% in the following month.
d. Other monthly expenses are as follows:

Requirements
1. Prepare Thumbtack€™s sales budget for April and May, 2012. Round all amounts to the nearest $1.
2. Prepare Thumbtack€™s inventory, purchases, and cost of goods sold budget for April and May.
3. Prepare Thumbtack€™s operating expenses budget for April and May.
4. Prepare Thumbtack€™s budgeted income statement for April andMay.

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THUMBTACK OFFICE SUPPLY Budgeted Balance Sheet March 31, 2012 Liabilities Assets Current assets: Current liabilities: Accounts payable Cash $18,000 $12, 500 Accounts reccivable 12,000 Salary and commissions payable Total liabilities 1,400 16,000 Inventory $13,900 Prepaid insurance 2,200 $48,200 Stockholders' Equity Total current assets Plant assets: Common stock 16,000 Equipment and fixtures 45,000 Retained carnings Total stockholders' equity 33,300 Less: Accumulated depreciation 30,000 $15,000 $49,300 Total plant assets Total liabilities and stockholders' equity Total assets $63,200 $63,200