Use the Following Information to Prepare a Budgeted Income Statement

question 52

Essay

Use the following information to prepare a budgeted income statement for Stellar Company for the month of June.
a. Beginning cash balance on June 1 is $52,000.
b. Sales amounts are: April (actual), $1,450,000, May (actual), $1,600,000, and June (budgeted),
$1,700,000.
c. Cost of goods sold is 53% of sales.
d. Budgeted cash disbursements for salaries in June: $260,000. Salaries payable on May 31 are
$60,000 and are expected to be $50,000 on June 30.
e. Budgeted depreciation expense for June: $24,000.
f. Other cash expenses budgeted for June: $282,000.
g. Accrued income taxes due in June: $48,000.
h. Bank loan interest due in June: $8,000 which represents the 1% monthly expense on a bank loan of $800,000.
i. The income tax rate applicable to the company is 30%.

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Definitions:

France

A country located in Western Europe, known for its history, culture, and significant contributions to art, science, and philosophy.

Exchange Rate

The worth of one currency when converted into another, establishing the amount one currency is valued in comparison to another.

Percentage

A proportion or share in relation to a whole, represented as a fraction of 100.

Strengthens

Becomes stronger or more forcefully effective.