Prepare thumbtack operating expenses budget for april

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Preparing an operating budget

Thumbtack's March 31, 2012, budgeted balance sheet follows:

The budget committee of Thumbtack Office Supply has collected the following data.

a. Sales in April were $40,000. You predict that monthly sales will enhance 2% over April's sales in May. June's sales will enhance 4% over April's sales. July's sales will enhance 20% over April's sales. Collections are 80% in the month of sale as well as 20% in the month following sale.

b. Thumbtack maintains stock of $11,000 plus 25% of the COGS budgeted for the following month. COGS = 50% of sales income. Purchases are paid 30% in the month of purchase and 70% in the month following the purchase.

c. Monthly wages amount to $7,000. Sales commissions equal 5% of sales for that month. Wages and commissions are paid 30% in the month incurred and 70% in the following month.

Requirements

Problem 1. Prepare Thumbtack's sales budget for April and May, 2012. Round all amounts to the nearest $1.

Problem 2. Prepare Thumbtack's inventory, purchases, and cost of goods sold budget for April and May.

Problem 3. Prepare Thumbtack's operating expenses budget for April and May.

Problem 4. Prepare Thumbtack's budgeted income statement for April and May.

Reference no: EM132709348

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