In: Accounting
Wolfpack Company is a merchandising company that is preparing a budget for the month of July. It has provided the following information:
Wolfpack Company Balance Sheet June 30 |
||
Assets | ||
Cash | $ | 91,400 |
Accounts receivable | 55,600 | |
Inventory | 48,800 | |
Buildings and equipment, net of depreciation | 237,000 | |
Total assets | $ | 432,800 |
Liabilities and Stockholders’ Equity | ||
Accounts payable | $ | 32,800 |
Common stock | 100,000 | |
Retained earnings | 300,000 | |
Total liabilities and stockholders’ equity | $ | 432,800 |
Budgeting Assumptions:
Required:
1. 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.