5 Exercise 8-18 Cash Flows; Budgeted Income Statement and Balance Sheet [LO8-2, LO8-3, LO8-9, LO8 10) 2 Wolfpack Company is a merchandising company that is preparing a budget for the month of July. It has provided the following Information: w Wolfpack Company Balance Sheet June 30 Assets Cash Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Coonon stock Retained earnings Total Libilities and stockholders' equity $ 75,600 61,800 36,600 199.000 $ 373,000 $ 33,00 100, eee 240,000 $ 373,000 Budgeting Assumptions: 1. All sales are on account. Thirty percent of the credit sales are collected in the month of sale and the remaining 70% are collected in the month subsequent to the sale. The accounts receivable at June 30 will be collected in July 2. All merchandise purchases are on account. Twenty percent of merchandise Inventory purchases are paid in the month of the Saved Help Save & Exit Chapter 8 Homework You received partial credit in the previous attempt. Check my work View previous 5 Budgeting Assumptions: 2 pos 1. All sales are on account. Thirty percent of the credit sales are collected in the month of sale and the remaining 70% are collected in the month subsequent to the sale. The accounts receivable at June 30 will be collected in July 2. All merchandise purchases are on account. Twenty percent of merchandise inventory purchases are paid in the month of the purchase and the remaining 80% is paid in the month after the purchase. The accounts payable at June 30 will be paid in July 3. The budgeted Inventory balance of July 31 is $37.800, 4. Depreciation expense is $3,000 per month. All other seling and administrative expenses are pold in full in the month the expense 5. The company's cash budget for July shows expected cash collections of $98,700, expected cash disbursements for merchandise purchases of $40,000, and cash paid for selling and administrative expenses of $20,620 is incurred Required: 1. For the month of July, calculate the following a. Budgeted sales b. Budgeted merchandise purchases Budgeted cost of goods sold d. Budgeted net operating income 2. Prepare a budgeted balance sheet as of July 31