Budgeted Balance Sheet. The balance sheet for Griffith Stores, Inc. at Decem- ber 31, 1998, is:

Cash receipts for the year are collections on accounts receivable amounting to $846,000. Cash payments are budgeted at $838,000. Included in those payments is $126,000 for various expenses that do not flow through accounts payable. Credits to accounts payable for the year are estimated at $715,000, all merchandise purchases. All cash payments are for expenses or purchases. Depreciation expense is $75,000. Net sales are estimated at $930,000. The inventory of merchandise is expected to increase to $147,000 by the end of the year.
Required:
From the information given, prepare a budgeted balance sheet at December 31, 1999. Prove the retained earnings balance by computing the net income. Income tax is estimated at 40 percent and will be paid after December 31, 1999.

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Assets: Liabilities and Equity: Cash $ 82,000 Accounts payable. $ 62,000 Accounts receivable 112,000 Inventory 136,000 Capital stock 300,000 Building and fixtures, net 358,000 Retained earnings 326,000 Total assets. $688,000 Total liabilities & equity.. $688,000