develop a Cash Budget, Income Statement and Balance Sheet Company A is a distribution company of premium Italian wines The firms balance sheet for July 31, 2023 is detailed below Company A Balance Sheet July 31, 2023 Assets Cash $ 9,000 Accounts Receivable 54,000 Inventory 30,000 Buildings and equipment, net of depreciation 207,000 Total Assets $300,000 Liabilities and Shareholders Equity Accounts Payable $ 63,000 Notes Payable 14,500 Common Stock 180,000 Retained Earnings 42,500 Total Liabilities and stockholders equity $300,000 Company A Imports is currently engaged in preparing a budget for the month of August and has put together the following relevant data Sales are planned budgeted at $200,000 for August Of these planned sales, $ 60,000 will be for cash the remainder will be credit sales One half of a months credit sales are to be collected in the month the sales are made, and the remainder is collected in the following month All of the July 31 accounts receivable will be collected in August Purchases of inventory are expected to total $120,000 during August These purchases will all be on account Forty (40 ) of all purchases are paid for in the month of purchase the remainder are paid in the following month All of the July 31 accounts payable to suppliers will be paid in August The August 31 ending inventory balance is budgeted at $40,000 Selling and Administration expenses for August are budgeted at $72,000, exclusive of depreciation These expenses will be paid in cash Depreciation is budgeted at $2,000 for the month The Note Payable on the July 31 balance sheet will be paid during August, with $100 interest (All of the interest relates to May ) New refrigerator storage equipment costing $6,500 will be purchased for cash during August During August, the company will borrow $20,000 from its bank by giving a new Note Payable to the bank for that amount The new note will be due in one year Required Calculate the expected cash collections from the customers for August Calculate the expected cash disbursements for merchandise purchases for August Prepare a Cash Budget for August Using a traditional income statement as your guide, prepare a budgeted income statement for August Prepare a budgeted balance sheet as of August 31, 2023 Suggested Income Statement Format Company A Imports, Inc Budgeted Income Statement For the Month Ending August 31, 2023 Sales Cost of Goods Sold Gross Profit Selling and Administration Expenses Net Operating Income Interest expense Net Income

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develop a Cash Budget, Income Statement and Balance Sheet.

Company A is a distribution company of premium Italian wines. The firms balance sheet for July 31, 2023 is detailed below:

Company A

Balance Sheet

July 31, 2023

Assets

Cash $ 9,000

Accounts Receivable 54,000

Inventory 30,000

Buildings and equipment, net of depreciation 207,000

Total Assets $300,000

Liabilities and Shareholders Equity

Accounts Payable $ 63,000

Notes Payable 14,500

Common Stock 180,000

Retained Earnings 42,500

Total Liabilities and stockholders equity $300,000

Company A Imports is currently engaged in preparing a budget for the month of August and has put together the following relevant data:

Sales are planned/budgeted at $200,000 for August. Of these planned sales, $ 60,000 will be for cash; the remainder will be credit sales. One-half of a months credit sales are to be collected in the month the sales are made, and the remainder is collected in the following month. All of the July 31 accounts receivable will be collected in August.
Purchases of inventory are expected to total $120,000 during August. These purchases will all be on account. Forty (40%) of all purchases are paid for in the month of purchase; the remainder are paid in the following month. All of the July 31 accounts payable to suppliers will be paid in August.
The August 31 ending inventory balance is budgeted at $40,000.
Selling and Administration expenses for August are budgeted at $72,000, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2,000 for the month.
The Note Payable on the July 31 balance sheet will be paid during August, with $100 interest. (All of the interest relates to May.)
New refrigerator storage equipment costing $6,500 will be purchased for cash during August.
During August, the company will borrow $20,000 from its bank by giving a new Note Payable to the bank for that amount. The new note will be due in one year.

Required:

Calculate the expected cash collections from the customers for August.
Calculate the expected cash disbursements for merchandise purchases for August.
Prepare a Cash Budget for August.
Using a traditional income statement as your guide, prepare a budgeted income statement for August.
Prepare a budgeted balance sheet as of August 31, 2023.

Suggested Income Statement Format

Company A Imports, Inc.

Budgeted Income Statement

For the Month Ending August 31, 2023

Sales

Cost of Goods Sold

Gross Profit

Selling and Administration Expenses

Net Operating Income

Interest expense

Net Income