Thumbtacks 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 Aprils sales in May. Junes sales will increase 4% over Aprils sales. Julys sales will increase 20% over Aprils sales.b. Collections are 80% in the month

Chapter 22, Short Exercises #22
Thumbtack€™s March 31, 2012, budgeted balance sheet follows:

THUMBTACK OFFICE SUPPLY Budgeted Balance Sheet March 31, 2012 Liabilities Assets Current assets: Current liabilities: Ac

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:

Thumbtack€™s March 31, 2012, budgeted balance sheet 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.

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!
Related Book For answer-question

Financial and Managerial Accounting

3rd Edition

Authors: Horngren, Harrison, Oliver

ISBN: 978-0132497978

Decision Cases:
Ethical Issues:
Fraud Cases:
Team Projects: