Chapter 22, Problem P22.44APGA

To determine

Operating budget:

The budgets which prepared for the operating activities of a company like sales, purchase, cost of goods sold, selling and administrative expenses are called operating budget.

To determine:

1.

Prepare sales budget of Paperclip Office Supply for April and May 2016.

2.

Prepare inventory, purchases, and cost of goods sold budget of Paperclip for April and May 2016.

3.

Prepare selling and administrative expense budget of Paperclip for April and May 2016.