Budgeted Income Statement and Balance Sheet LO 8-2 LO 8-3, 8-9, t08-10 ny is a merchandising company that is preparing a budget for the month of July 18 Cash Flows; Incom Wollpack Company pd the following information: It has provided Wolfpack Company Balance Sheet June 30 Assets Cash Accounts receivable. Inventory Buildings and equipment, net of depreciation $ 75,000 50,000 30,000 150,000 $305,000 Total assets Liabilities and Stockholders' Equity Accounts payable Retained earnings Total liabilities and stockholders' equity 35,300 269,700 $305,000 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 receiv- able at June 30 will be collected in July. paid in the month of the purchase and the remaining 80% is paid in the month after the purchase. 3. The budgeted inventory balance at July 31 is $22,000. 4. Depreciation expense is $3,000 per month. All other selling and administrative expenses are paid in full in the month the expense is incurred. 5. The company's cash budget for July shows expected cash collections of $77,000, expected cash disbursements for merchandise purchases of $44,500, and cash paid for selling and administrative expenses of $15,000 Required 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 Prepare a budgeted balance sheet as of July 31