Exercise 8-18 Cash Flows; Budgeted Income Statement and Balance Sheet LO8-2, LO8-3, LO8-9, LO8- 10] Woltpack Company is a merchandising company that is preparing a budget for the month of July. It has provided the following information: Wolfpack Conpany Balance Sheet June 3 Cash Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets Liabilities and Stockholders Equity Accounts payable $ 75,000 59 600 33,600 226,000 $394,200 $ 52,200 342,000 $394,200 Total liabilities and stockholders equity Budgeting Assumptions: L All sales are on account. Thirty percent ofthe credit sales are collected in the month of sale and the remaining 70% are collected in the month subsequent to the sale. The accounts recevable at June 30 will be co ected in July 2. All merchandise purchases are on account. Twenty percent of merchandise Inventory purchases are paid in the month ofthe purchase and the remaining 80% is paid in the month after the purchase. 3. The budgeted inventory balance at July 31 Is $25,200. 4. Depreclation expense is $4,520 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 $86,300, expected cash disbursements for merchandise purchases of $61,200, and cash paid for selling and administrative expenses of $13,280. Required: 1 For the month of Juty, calculate the following: 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. Required Required Required Required Required 1A 1B 1C 1D Calculate the budgeted sales for month of July