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.

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