Accounting $102$ budgeting project $2$ amounts are not adding up Using Hitchen's info from the income statement budgets $($part $1),$ the remaining account info is

presented to prepare the components of the balance sheet budgets. Assume the same budget is

expected for the next three months $($July$,$ Aug, Sept$).$

Opening July $1$ cash balance is $$610,000.$

A$/$R beginning balance of $$2,175,000$ was $68\%$ collected in July and the remaining in August.

Sales: $30\%$ collected in month of sale, $50\%$ the following month, and $20\%$ in the third month.

A$/$P opening balance of $$292,000$ was paid $70\%$ this month and $30\%$ next month.

Direct Materials are paid $30\%$ during month of purchase, $50\%$ the following month, and $20\%$ the

third month.

W$/$P had an opening balance of $$225,000$ and paid off this month

Direct Labor is paid $73\%$ this month and the remaining in the following month.

Factory Overhead & Selling$/$Admin is paid $100\%$ this month $($excluding Depreciation$)$

Dividends are expected to be paid of $$173,000,$$$240,000,$ and $$260,000$ in the three months

respectively

Plans are in place to purchase a piece of equipment for $$145,000$ in month $1(10\%$ paid this month,

$40\%$ paid in month $2$ and the remaining $50\%$ in month $3).$

a$.$ Retired Asset expected to sell for $$15,000$ and collected $100\%$ in the second month.

$100\%$ of income tax is paid each month

Beginning balances:

a$.$ Equipment $=2,164,000$

b$.$ Accum. Dep. Equipment $=1,256,000$