Question

Please help with each requirment

10 Wolfpack Company is a merchandising company that is preparing a budget for the month of July. It has provided the following information: $ 75,200 60,000 Wolfpack Company Balance Sheet June 30 Assets Cash Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity 210.000 $ 392,000 $ 52,000 100,000 240,000 $ 392,000 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. The accounts payable at June 30 will be paid in July. 3. The budgeted inventory balance at July 31 is $16.900. 4. Depreciation expense is $4,200 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 $89,700, expected cash disbursements for merchandise purchases of $57.900, and cash paid for selling and administrative expenses of $15,600. 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. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 1C Required 1D Required 2 Calculate the budgeted sales for month of July. Budgeted sales for July (Required 1A Required 1B >

Answer 1

Solution 1:

00 von 8 9 10 11 12 13 14 a. Budgeted sales for July Expected cash collection during July Less: collection of Accounts receivable at June 30 Collection of July sales in July /% of collection in same month Budgeted sales for July $89,700 $60,000 $29,700 30% $99,000 b. Budgeted Merchandise purchases for July 16 17 18 Expected cash disbursement for merchandise purchases Less: Paymeny of Accounts payable at June 30 Collection of July sales in July /% of payment in same month Budgeted Merchandise purchases for July $57,900 $52,000 $5,900 19 20% $29,500 20 21 22 23 25 c. Budgeted cost of goods sold for July Budgeted Merchandise purchases for July Add: Inventory at June 30 Total available merchandise for sale Less: budgeted inventory at July 31 Budgeted cost of goods sold 26 $29,500 $46,800 $76,300 $16,900 $59,400 27 28 29 30 31 32 33 d. Budgeted Net operating income for July Budgeted sales for July Less: Cost of goods sold Gross profit Less: total selling and administrative expenses (15600 +4200) Budgeted Net operating income 34 $99,000 $59,400 $39,600 $19,800 $19,800 35 36 37 38 39 (30) ) Sheet29 Sheet181 (29) Sheet181 (30) Sheet578 SH

Solution 2:

УК AK 10 Amount Balance Sheet-Wolfpack company 31-Jul Particulars Assets: Cash ($75200 + $89700 - $57900 - $15600) Accounts receivables ($99,000*70%) Inventory Buildings and equipment net of depreciation ($210000 - $4200) Total Assets $91,400 $69,300 $16,900 $205,800 $383,400 16 17 18 19 20 Liabilities and stockholder's Equity: Accounts payable ($29500*80%) Common Stock Retained Earnings ($240000 + $ 19800) Total liabilities and stockholders equity $23,600 $100,000 $259,800 $383,400 21 24 25 26 27 28 29 30 31 33 34 37 38 20 (30)) Sheet29 Sheet181 (29) Sheet181 (30) Sheet578 SH