5. Budgeted income statement, 20Y2 (6 months)
Sales	2,700,000	Sales budget
Cost of goods sold	1,620,000	Purchases budget
Gross margin	1,080,000
Selling and administrative expenses	555,000	S&A expense budget
Operating income	525,000
Interest expense	n.a.
Income tax expense	130,000	Cash budget
Net income	395,000

6. Budgeted balance sheet, June 30, 20Y2
Assets
Cash	315,400	Cash budget
Accounts receivable	400,000	Sales budget
Inventory	156,000	Purchases budget
Prepaid insurance	18000	Jan 1 balance less insurance expense
PP&E, net of depreciation	90000	Jan 1 balance plus acquisitions less depreciation
Total assets	979,400

I need help with the chart below

Liabilities and Stockholders Equity
Accounts payable		Purchases budget
Common stock		Jan 1 balance
Retained earnings		Jan 1 balance plus net income
Total liabilities and stockholders equity

7. Budgeted statement of cash flows, 20Y2 (6 months)
Cash provided by operating activities
Net income		Income statement
+ Depreciation		S&A expenses budget
Increase in accounts receivable		Comparative balance sheets
Increase in inventory		Comparative balance sheets
+ Decrease in prepaid insurance		Comparative balance sheets
+ Increase in accounts payable		Comparative balance sheets
Total
Cash used in investing activities
Equipment purchases		Cash budget
Cash used in financing activities
Dividends paid		Cash budget
Increase in cash balance

Check figures:

Total budgeted sales revenue is $2,700,000

Total budgeted cash collections are $2,604,000

Total budgeted inventory purchases are $1,656,000

Budgeted cash payments for inventory purchases are $1,605,600

Budgeted cash balance on June 30 is $315,400

Budgeted net income is $395,000

Budgeted total assets on June 30 is $1,775,400

Cash provided by operating activities is $391,400

Case 2. Annual Budget and Budgeted Financial Statements - Solution