Exercise 8-18 Cash Flows; Budgeted Income Statement and Balance Sheet [LO8-2, LO8-3, LO8-9, LO8- 10] Wolfpack Company is a merchandising company that is preparing a budget for the month of July. It has provided the following information: Wolfpack Company Balance Sheet June 30 Assets Cash nts receivable 00'16 $ Inventory 48,800 Buildings and equipment, net of depreciation 237,000 432,800 Total assets Liabilities and Stockholders' Equity $ 32,800 Accounts payable Common stock 100,000 Retained earnings $432,800 Total liabilities and stockholders' equity Budgeting Assumptions: 1. All sales are on account. 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 at July 31 is $27,300. 4. Depreciation expense is $4,740 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 $102,100, expected cash disbursements for merchandise purchases of $47,100, and cash paid for selling and administrative expenses of $26,260. remaining 70% are collected percent of the credit sales are collected in the month of sale nd I. rUi ine ONIT OT JUiy, Cdiculdle line iOlIOWINg. a. Budgeted sales b. Budgeted merchandise purchases c. Budgeted cost of goods sold d. Budgeted net operating income 2. Prepare a budgeted balance sheet as of July 31. Complete this question by entering your answers in the tabs below. Req 1A Req 1C Req 1D Req 2 Req 1B Prepare a budgeted balance sheet ass of July 31 Wolfpack Company Balance Sheet July 31 Assets Inventory 27,300 $ 27,300 Total assets Liabilities and Stockholders' Equity 0 Total liabilities and stockholders' equity