Use the Following Information to Prepare a Budgeted Balance Sheet

Question 156
Essay

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.