Use the information in Exercise 22-3 and the following additional information to prepare a budgeted in¬ come statement for the month of July and a budgeted balance sheet for July 31.

a. Cost of goods sold is 55% of sales.

b. Inventory at the end of June is $80,000 and at the end of July is $60,000.

c. Salaries payable on June 30 are $50,000 and are expected to be $60,000 on July 31.

d. The equipment account balance is $1,600,000 on July 31. On June 30, the accumulated depreciation on equipment is $280,000.

e. The $6,600 cash payment of interest represents the 1% monthly expense on a bank loan of $660,000.

f. Income taxes payable on July 31 are $30,720, and the income tax rate applicable to the company is 30%.

g. The only other balance sheet accounts are: Common Stock, with a balance of $600,000 on June 30; and Retained Earnings, with a balance of $964,000 on June 30.