P2242A similar to Question Help The budget committee of Prin

P22-42A (similar to) Question Help The budget committee of Printer Office Supply has assembled the following data: Printer Office Supply\'s March 31, 2018, balance sheet follows EEE (Click the icon to view the balance sheet) (Click the icon to view the data.) Read the requirements Requirement 1. Prepare Printer\'s sales budget for April and May 2018. Round all amounts to the nearest dollar Data Table Printer Office Supply Sales Budget April and May, 2018 Printer Office Supply Balance Sheet March 31, 2018 Assets April $ 60,000 May 61,200 Total budgeted sales Requirement 2. Prepare Printer\'s inventory, purchases, and cost of goods sold budget for April and May. Printer Supply Company Inventory, Purchases, and Cost of Goods Sold Budget April and May, 2018 Current Assets: S Cash Accounts Receivable Merchandise Inventory Prepaid Insurance Total Current Assets 34,000 21,000 16,500 1,300 April May Cost of goods sold Plus: Desired ending merchandise inventory Total merchandise inventory required Less: Beginning merchandise inventory Budgeted Purchases S 72,800 Property, Plant, and Equipment 56,000 Equipment and Fixtures Less: Accumulated Depreciation 41,000 S 113,800 Total Assets Liabilities More Info Current Liabilities: S 18,000 3,400 Accounts Payable Salaries and Commissions Payable sales in April are expected to be $60,000. Printer 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 Printer 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 S5.000. Sales commissions equal 5% of sales for that month. Other monthly expenses are as follows: Rent $3,000 Depreciation: $300 Insurance: $200 Income tax: $1,600 a Total Liabilities S 21,400 Stockholders\' Equity b. Common Stock, no par Retained Eamings 17,000 75,400 c. d. 92,400 Total Stockholders\' Equity $ 113,800 Total Liabilities and Stockholders\' Equity

Solution

Printer supply company

Inventory, Purchases and cost of goods sold budget

April and May 2018

30000

(60000*50%)

30600

(61200*50%)

16650

(9000+(30600*25%))

16800

(9000+(31200*25%))

16500

(9000+(60000*50%*25%))

	April	may
Cost of goods sold	30000 (60000*50%)	30600 (61200*50%)
Plus: desired ending merchandise inventory	16650 (9000+(30600*25%))	16800 (9000+(31200*25%))
Total merchandise inventory required	46650	47400
Less: Beginning merchandise inventory	16500 (9000+(60000*50%*25%))	16650
Budgeted Purchases	30150	30750