Use the Following Information to Prepare a Budgeted Balance Sheet

question 66

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.

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Definitions:

Product Modifications

Adjustments or improvements made to a product’s design, features, or performance to meet customer needs or capture market share.

Business Analysis

The practice of identifying business needs and determining solutions to business problems, often involving the assessment of business models or processes.

Prototype Testing

The process of evaluating the preliminary version of a product under conditions that simulate real-world use, to identify improvements before mass production.