Use the Following Information to Prepare a Budgeted Balance Sheet
Use the following information to prepare a budgeted balance sheet Magee Company for the month of June.
a. The budgeted net income for the month of June is $236,000.
b. The beginning cash balance is $62,000; budgeted cash receipts are $1,660,000; budgeted cash disbursements are $1,580,000.
c. Budgeted sales for May and June are $1,600,000 and $1,700,000 respectively. Collections are 40% in the month of sale and 60% in the month following.
d. The projected inventory balance is 10% of the following month's sales. Sales for July are projected to be $1,750,000.
e. Purchases of inventory are paid 80% in the month of purchase, and 20% in the month following. Budgeted purchases for June are $900,000.
f. The equipment account balance is $1,400,000 on June 30. On May 31, the accumulated depreciation on equipment is $276,000. Depreciation expense for June is estimated to be $24,000.
g. There is an outstanding loan balance of $800,000.
h. Accrued income taxes payable for June 30 are $71,000; and accrued salaries payable are $50,000.
i. The only other balance sheet accounts are: Common Stock, with a balance of $800,000 on May 31, and Retained Earnings with a balance of $300,000 on May 31.