8-8A -Cash Budget, Income Statement, Balance Sheet Mullins Company manufactures didgeridoos. The company's June 30 balance sheet follows Mullins Company Balance Sheet June 30 ASSETS Cash Accounts receivable, net Inventory Property, plant and equipment, net Total assets S 20,000 30,000 50,000 150,000 250.0 LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable, net Bank loan payable Common shares Retained earnings Total liabilities and shareholders equit S 50,000 20,000 140,000 40,000 250,000 The company shows the following budget items for July: a) Sales are expected to be $100,000 in July. 60% are expected to be collected in July, 40% will be collected in August. b.) The full $30,000 of accounts receivable on the June 30 balance sheet (above) is expected to be collected in July c) Cost of goods sold is expected to be 45% of sales. d.) The company plans to purchase $50,000 in inventory during July. The company's purchases are all on account. Of the company's purchases, 20% are paid in the month of the purchase, and 80% are paid in the following month. e.) The full $50,000 of accounts payable on the June 30 balance sheet (above) is expected to be paid off in July f.) The company's operating expenses are expected to be $40,000 including depreciation of 1,000. All operating expenses except depreciation are cash expenses. g.) The company's bank loan will be paid in full with $200 interest. h.) New equipment costing $15,000 will be purchased using cash. i.) The company wishes to keep a minimum cash balance of $10,000 and has access to borrow up to $100,000 from a local bank. Required a.) Compute the expected cash collections for July b.) Compute the expected cash disbursements for July C.) Based on your answers for part a.) and b), prepare a cash budget for July d.) Prepare a budgeted income statement for July e.) Prepare a balance sheet dated July 31