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.

---

Definitions:

Nonverbal Subtests

Parts of assessments or tests that evaluate abilities without the use of spoken or written language, often focusing on visual or spatial skills.

Verbal Subtests

Components of intelligence or cognitive tests that assess an individual’s ability to understand, process, and communicate information through language.

Overall IQ

A measure of a person's cognitive abilities in comparison to the general population, usually determined by standardized testing.

Composite Scores

Aggregated scores derived from combining separate scores to provide a summary measure.