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	$	75,800
Accounts receivable		59,000
Inventory		43,400
Buildings and equipment, net of depreciation		223,000
Total assets	$	401,200
Liabilities and Stockholders Equity
Accounts payable	$	63,200
Common stock		100,000
Retained earnings		238,000
Total liabilities and stockholders equity	$	401,200

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 $29,200.

Depreciation expense is $4,460 per month. All other selling and administrative expenses are paid in full in the month the expense is incurred.

The companys 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.

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.

Required 1A

Required 1B

Required 1C

Required 1D

Required 2

Calculate the budgeted sales for month of July.

Budgeted sales for July

Calculate the budgeted merchandise purchases for month of July.

Budgeted merchandise purchases for July

Calculate the budgeted cost of goods sold for month of July.

Budgeted cost of goods sold for July

Calculate the budgeted net operating income for month of July.

Budgeted net operating income for July

Prepare a budgeted balance sheet as of July 31.

Wolfpack Company
Balance Sheet
July 31
Assets
Total assets	$0
Liabilities and Stockholders Equity
Total liabilities and stockholders equity	$0