2. PHOTOTEC, INC. Budgeted Income Statement For the Month of June Sales Cost of goods sold: Beginning inventory Purchases Goods avalable for sale Ending inventory Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income 3. PHOTOTEC, INC. Budgeted Balance Sheet June 30 Assets Cash Accounts receivable Inventory Plant and equipment, net of depreciation Total assets Liabllities and Equity Accounts payable Note payable Capital stock Retained earnings Total liabilities and equity PHOTOTEC; INC. Cash Budget For the Month of June Dlican nata nono nn. PROBLEM 8-20 Cash Budget Income Statement; Balance Sheet [LO2, L04, L08, L09, L010] The balance sheet of Phototec, Inc., a distributor of photographic supplies, as of May 31 is given below: The company is in the process of preparing a budget for June and has assembled the following data: a. Sales ace budgeted at $250,000 for June, Of these sales, $60,000 will be for cash; the remainder will be credit sales. One-half of a month's credit sales are collected in the month the sales are made, and the remainder is collected the following month. All of the May 31. accounts receivable will be collected in June. b. Purchases of inventory are expected to total $200,000 during June. These purchases will all be on account. Forty percent of all inventory purchases are paid for in the month of purchase; the remainder are paid in the following month. All of the May 31 accounts payable to suppliers will be poid during June. c. The June 30 inventory balance is budgeted at $40,000. d. Selling and administrative expenses for June are budgeted at $51,000, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2,000 for the month. c. The note payable on the May 31 balance sheet will be paid during Junc. The company's interest expense for June (on all borrowing) will be $00, which will be paid in eash. f. New warchouse equipmeat costing $9,000 will be purchased for cash during lune. g. During June, the company will borrow $18,000 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year. Required: 1. Prepare a cash budget for June. Support your budget with a schedule of expecied cash collections from sales and a schedule of expected cash disbursements for inventory purchases 2. Prepare a budgeted income statement for June, Use the absorption costing income statement