P21-21A The budget committee of Clipboard Office Supply has assembled the following data. As the business manager, you must prepare the budgeted income statements for May and June 2011.
a. sales in April were $50,000. You forecast that monthly sales will increase 2.0% in May and 2.4% in June.
b. clipboard maintains inventory of $9000 plus 25% of the sales revenue budgeted for the following month. Monthly purcahses average 50% of sales revenue for the same month. Actual inventory on April 30th was $13000. Sales budgeted for July are $65000
c monthly salaries amount to $3000. Sales commissions equal 4% of sales for that month. Combine salaries and commissions into a single figure.
d. other monthly expenses are
rent $2600 paid as incurred
insurance $200 expiration of prepaid amount
income tax 20% of operating income.
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