70.2K

Verified Solution

Link Copied!

Balance Sheet F March 31, 2018 Assets Current Assets: Cash S 15,000 Accounts Receivable 21,000 Merchandise Inventory 25,500 1,200 Prepaid Insurance Total Current Assets $ 62,700 Property, Plant, and Equipment: Equipment and Fixtures 30,000 (18.000) Less: Accumulated Depreciation 12,000 $ Total Assets 74,700 Liabilities Current Liabilities: : Accounts Payable $ 20,000 2,250 S 22.250 Salaries and Commissions Payable Total Liabilities Stockholders' Equity Common Stock, no par 23,000 Retained Earnings 29,450 52.450 Total Stockholders' Equity S 74,700 Total Liabilities and Stockholders' Equity 2: More Info b. d. Sales in April are expected to be $140,000. Cube 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. Cube maintains inventory of $8,000 plus 25% of the cost of goods sold budgeted for the following month. Cast 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: $2.200 Depreciation: $800 Insurance: $200 Income tax: $2,100 Cube Office Supply Sales Budget April and May, 2018 April May $ 140,000 $ 142,800 Total budgeted sales Requirement 2. Prepare Cube's inventory, purchases, and cost of goods sold budget for April and May. Cube Supply Company Inventory, Purchases, and Cost of Goods Sold Budget April and May, 2018 April (1) Cost of goods sold $ 70,000 May 71,400 Plus: (2) Desired ending merchandise inventory Total merchandise inventory required Less: (3) Beginning merchandise inventory Budgeted Purchases Requirement 3. Prepare Cube's selling and administrative expense budget for April and May. Cube Office Supply Selling and Administrative Expense Budget April and May, 2018 April May Variable expenses: (4) Fixed expenses: (5) (6) (7) (8) Total fixed expenses Total selling and administrative expenses

Answer & Explanation Solved by verified expert

See Answer