Following information relates to Sanchez Co.

a.	Beginning cash balance on July 1: $40,000.
b.	Cash receipts from sales: 27% is collected in the month of sale, 50% in the next month, and 23% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are: May (actual), $1,376,000; June (actual), $960,000; and July (budgeted), $1,120,000.
c.	Payments on merchandise purchases: 54% in the month of purchase and 46% in the month following purchase. Purchases amounts are: June (actual), $344,000; and July (budgeted), $600,000.
d.	Budgeted cash disbursements for salaries in July: $168,800.
e.	Budgeted depreciation expense for July: $9,600.
f.	Other cash expenses budgeted for July: $120,000.
g.	Accrued income taxes due in July: $80,000 (related to June).
h.	Bank loan interest due in July: $5,280.

Additional Information:
a.	Cost of goods sold is 40% of sales.
b.	Inventory at the end of June is $64,000 and at the end of July is $216,000.
c.	Salaries payable on June 30 are $40,000 and are expected to be $32,000 on July 31.
d.	The equipment account balance is $1,280,000 on July 31. On June 30, the accumulated depreciation on equipment is $224,000.
e.	The $5,280 cash payment of interest represents the 1% monthly expense on a long-term bank loan of $528,000.
f.	Income taxes payable on July 31 are $112,896, and the income tax rate applicable to the company is 30%.
g.	The only other balance sheet accounts are: Common Stock, with a balance of $513,440 on June 30; and Retained Earnings, with a balance of $857,600 on June 30.

Prepare a budgeted income statement for the month of July and a budgeted balance sheet for July 31. (Be sure to list the assets and liabilities in order of their liquidity. Input all amounts as positive values. Omit the "$" sign in your response.)

SANCHEZ COMPANY Budgeted Income Statement For The Month Ended July 31

__________________ $_____________________ __________________ $_____________________ ....................... __________________ $_____________________

Operating Expenses __________________ $_____________________ __________________ $_____________________ __________________ $_____________________ __________________ $_____________________ .................... Total Expense $_____________________ ................. __________________ $_____________________ __________________ $_____________________ .................... __________________ $_____________________ SANCHEZ COMPANY Budgeted Balance Sheet As of July 31 Assets __________________ $_____________________ __________________ $_____________________ __________________ $_____________________ ....................... Total Assets $_____________________

________________ $_____________________ ________________ $_____________________ $_____________________ ............................................. Total Assets $_____________________ .........................................

Liabilities and Equity
Liabilities __________________ $_____________________ __________________ $_____________________ __________________ $_____________________ .................... Total Current Liabilities $_____________________ ________________ $_____________________ $_____________________ ............................................. Stockholders