Help Save&ExitSubm; Check my work halance Sheet June 30 Assets Cash 79,200 68,60

Question

Help Save&ExitSubm; Check my work halance Sheet June 30 Assets Cash 79,200 68,600 40,200 Accounts receivable Inventory Buildings and equipment,net of depreciation213,000 Total assets Liabilities and Stockholders' Equity Accounts payable Conmon stock 401,000 56,00o 100,000 Total liabilities and stockholders equity s 401,000 Budgeting Assumptions: 1. All sales are on account. Thirty percent of the credit sales are collected in the month of sale and the remaining 70% are collected in the month subsequent to the sale. The accounts receivable at June 30 will be collected in July 2. All merchandise purchases are on account. Twenty percent of merchandise inventory purchases are paid in the month of the purchase and the remaining 80% is paid in the month after the purchase. 3. The budgeted inventory balance at July 31 is $25,700 4 Depreciation expense is $4.260 per month. All other selling and administrative expenses are paid in full in the month the expense is incurred 5. The company's cash budget for July shows expected cash collections of $106,100, expected cash disbursements for merchandise purchases of $68,100, and cash paid for selling and administrative expenses of $20,740 Required . For the month of July, calculate the following a. Budgeted sales b. Budgeted merchandise purchases c Budgeted cost of goods sold d. Budgeted net operating income 2. Prepare a budgeted balance sheet as of July 31 Prev2 of 2

Explanation / Answer

Plese mark rating if solution is as per your expectation Statement Showing Budgeted sales for July Detail Amount Expected cash Collection in July $106,100 Account receivable as on June30 -$68,600 Cash Collection for July Sales $37,500 Total Budgeted Sales in July $125,000 ($37500/30%) Statement Showing Budgeted Merchandised Purchase for July Detail Amount Expected cash disbursement in July for Merchandised Purchase $68,100 Account payable as on June30 -$56,000 Cash disbursement for July Purchase $12,100 Total Merchandised Purchsed in July $60,500 ($12100/20%) Statement Showing Budgeted Cost of Goods Sold for July Detail Amount Beginning Bal of Inventory $40,200 Inventory Purchased in July $60,500 Closing Bal of Inventory as on 31 Jul -$25,700 Cost of Goods Sold for July $75,000 Statement Showing Budgeted Net Operating Income for July Detail Amount Sales $125,000 Less: COGS -$75,000 Gross Profit $50,000 Less: Selling & Admin -$20,740 Depreciation -$4,260 Net Operating Income $25,000 WolfPack Company Budgeted Balance sheet as on 31 July Detail Amount Asset Cash $96,460 Account Receivable ( $125000*70%) $87,500 Inventory $25,700 Net Building & Equipment($213000-4260) $208,740 Total Asset $418,400 Liabilities & Shareholder Equity Account Payable ( $60500*80%) $48,400 Retained Earning( $245000+25000) $270,000 Common Stock $100,000 Total Liabilities & Shareholder Equity $418,400 Working Note for Cash Balance as 31st July Detail Amount Opening Balance $79,200 Expected Cash Collection $106,100 Less: Expected Cash Disbursement -$68,100 Less: Selling and Admin -$20,740 Closing Cash Balance as on 31st July $96,460

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