Clipboard Office Supply s March 31 2014 balance sheet follows
Clipboard Office Supply’s March 31, 2014, balance sheet follows:

The budget committee of Clipboard Office Supply has assembled the following data. a. Sales in April are expected to be $ 48,000. Clipboard forecasts that monthly sales will increase 5% over April sales in May. June’s sales will increase by 10% over April sales. July sales will increase 15% over April sales. Cash receipts are 80% in the month of the sale and 20% in the month following the sale. b. Clipboard 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. Purchases are paid 40% in the month of the purchase and 60% in the month following the purchase. c. Monthly salaries amount to $ 6,000. Sales commissions equal 5% of sales for that month. Salaries and commissions are paid 60% in the month incurred and 40% in the following month. d. Other monthly expenses are as follows:
Rent: $ 2,800, paid as incurred
Depreciation: $ 300
Insurance: $ 100, expiration of prepaid amount
Income tax: $ 1,700, paid as incurred

1. Prepare Clipboard’s sales budget for April and May 2014. Round all amounts to the nearest dollar.
2. Prepare Clipboard’s inventory, purchases, and cost of goods sold budget for April and May.
3. Prepare Clipboard’s selling and administrative expense budget for April and May.

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