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 $ $75,000$

Accounts receivable $50,000$

Inventory $30,000$

Buildings and equipment, net of depreciation $150,000$

Total assets $ $305,000$

Liabilities and Stockholders$$ Equity

Accounts payable $ $35,300$

Common stock $100,000$

Retained earnings $169,700$

Total liabilities and stockholders$$ equity $ $305,000$

Budgeting Assumptions:

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.

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 budgeted inventory balance at July $31$ is $$22,000.$

Depreciation expense is $$3,000$ per month. All other selling and administrative expenses are paid in full in the month the expense is incurred.

The company$$s cash budget for July shows expected cash collections of $$77,000,$ expected cash disbursements for merchandise purchases of $$44,500,$ and cash paid for selling and administrative expenses of $$15,000.$

Required:

$1.$ For the month of July, 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 $31.$Budgeting Assumptions:

Al sale: are on sccount. Thity percent of the creait sales are colected in the morth of sale and the remaining $70\%$ are colected in

the manth subsequent to the sel. The sccounts rece vable at June $30$ will be coWolfpack Company is a merchandising company that is preparing a budget for the month of July. It has

provided the following information:

Budgeting Assumptions:

All sales are on account. Thirty percent of the credit sales are collected in the month of sale and the

remalning $70\%$ are collected in the month subsequent to the sale. The accounts recelvable at June $30$ will

be collected In July.

All merchandise purchases are on account. Twenty percent of merchandlse inventory purchases are pald in

the month of the purchase and the remaining $80\%$ is pald in the month after the purchase.

The budgeted Inventory balance at July $31$ is $$22,000.$

Depreciation expense is $$3,000$ per month. All other selling and administrative expenses are pald in full in

the month the expense is incurred.

The company's cash budget for July shows expected cash collections of $$77,000,$ expected cash

disbursements for merchandise purchases of $$44,500,$ and cash pald for selling and administrative

expenses of $$15,000.$lected in July

Al merchand'se purchsses are on sccount Twenty percent of merchand'se inventory purchase: are poid in the month of the

g$.$ Thechase and the remaining $80\%$ is paid in the month after the purchsse.

osce st Jly $31$ : $$222000.$

is incurred.

The compony's casin budget for July showa exoected cash colections of $$77,000$ expected cash dsbursements for merchondike

purchases of $$44,500,$ and cash pold for selling and sdministrative expenses of $$15,000.$

Required:

For the month of July, calculste the following

Budgeted sale:

Budgeted merchandla purchsse

L$.$ Budgeted net oferating sold

$2$ Prepore s budgeted balance sheet ss of July $31.$

$(9$ Answer is complete but not entirely correct.

Complete this question by antaring yuur answers in the talas balow.

flequired $1$ a

ovapurid $18$

Required ic

flecyaired $1D$

Required $2$

Calaulate the budqeted salas for the month of July

$\backslash$table$[[$Budgotod sales for Jlly$,52,000]]$