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 Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Common stock $ 75,800 59,000 43,400 223,000 $ 401,200 $ 63,200 100,000 238,000 Accounts payable Retained earnings Total liabilities and stockholders' equity $ 401,200 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 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. 3. The budgeted inventory balance at July 31 is $29,200. 4. Depreciation expense is $4,460 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 $88,100, expected cash disbursements for merchandise purchases of $72,000, and cash paid for selling and administrative expenses of $14,940.