Use the Following Information to Prepare a Budgeted Balance Sheet

question 185

Essay

Use the following information to prepare a budgeted balance sheet for Grover 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; total budgeted cash receipts are $1,660,000; total budgeted cash payments are $1,580,000.
c.Budgeted sales for June are $1,700,000.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.Budgeted purchases for June are $900,000 to be paid 80% in the month of purchase and 20% in the month following.
f.The equipment account balance is $1,400,000 on May 31.No equipment purchases or disposals will be made during June.On May 31,the accumulated depreciation is $276,000.Depreciation expense for June is estimated to be $24,000.
g.An outstanding loan balance of $800,000 is expected at the end of June.
h.Accrued income taxes payable for June 30 are expected to be $71,000.Salaries payable for June 30 are expected to be $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.No additional common stock will be issued and no dividends will be paid during June.

Recognize the impact of sunlight penetration on aquatic life zones and photosynthesis in aquatic environments.

Understand the concept and characteristics of the photic or epipelagic zone.

Explain the importance of seasonal thermal stratification and turnovers in temperate lakes for aquatic organisms.

Identify various aquatic and terrestrial zones based on their ecological characteristics.

---

Definitions:

British Pounds

The currency of the United Kingdom, used as a medium of exchange within the country and sometimes beyond.

Put Option

A financial contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specific period.

Fair Hedge

A hedge that is accounted for at fair value, with changes in fair value recognized in earnings, to offset the exposure of an identified risk.