alley's managers have made the following additional assumptions and estimates: Estimated sales for July and August are $345,000 and $315,000 respectively Each month's sales are 20% cash sales and 80% credit sales.  Each month's credit sales are collected 30% in the month of the sale and 70% in the month following the sale.  All of the accounts receivable at June 30 will be collected in July Each month's ending inventory must equal 20% of the cost of the next month's sales.  The Cost of Goods Sold is 60% of sales.  The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase.  All of the accounts payable at June 30 will be paid in July Monthly selling and administrative expenses are always $75,000.  Each month $10,000 of this total amount is depreciation expense and the remaining $65,000 relates to expenses that are paid in the month they are incurred The company does not plan to buy or sell any plant and equipment during July.  It will not borrow any money, pay any dividends, issue any common stock or repurchase any of its own common stock during July   I need help determining the following:  5. A budgeted balance sheet as of July 31.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Valley's managers have made the following additional assumptions and estimates:

Estimated sales for July and August are $345,000 and $315,000 respectively

Each month's sales are 20% cash sales and 80% credit sales.  Each month's credit sales are collected 30% in the month of the sale and 70% in the month following the sale.  All of the accounts receivable at June 30 will be collected in July

Each month's ending inventory must equal 20% of the cost of the next month's sales.  The Cost of Goods Sold is 60% of sales.  The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase.  All of the accounts payable at June 30 will be paid in July

Monthly selling and administrative expenses are always $75,000.  Each month $10,000 of this total amount is depreciation expense and the remaining $65,000 relates to expenses that are paid in the month they are incurred

The company does not plan to buy or sell any plant and equipment during July.  It will not borrow any money, pay any dividends, issue any common stock or repurchase any of its own common stock during July

 

I need help determining the following: 

5. A budgeted balance sheet as of July 31.

 

Valley Manufacturing Inc
Balance Sheet
June 30, 2021
Assets
Cash
Accounts receivable
Inventory
Plant and equipment, net of depreciation
Total Assets
Liabilities and Stockholders' Equity
Accounts payable
Common stock
Retained earnings
Total Liabilities and Stockholders' Equity
$
$
$
$
$
$
$
$
$
140,000
175,000
45,200
554,800
915,000
115,000
586,000
214,000
915,000
Transcribed Image Text:Valley Manufacturing Inc Balance Sheet June 30, 2021 Assets Cash Accounts receivable Inventory Plant and equipment, net of depreciation Total Assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total Liabilities and Stockholders' Equity $ $ $ $ $ $ $ $ $ 140,000 175,000 45,200 554,800 915,000 115,000 586,000 214,000 915,000
5 Balance Statement
Cash
Accounts receivable
Inventory
Valley Manufacturing Inc
Budgeted Balance Statement
July 31, 2021
Assets
Plant and equipment, net of depreciation
Total Assets
Liabilities and Stockholders' Equity
Accounts payable
Common stock
Retained earnings
Total Liabilities and Stockholders' Equity
$
$
Transcribed Image Text:5 Balance Statement Cash Accounts receivable Inventory Valley Manufacturing Inc Budgeted Balance Statement July 31, 2021 Assets Plant and equipment, net of depreciation Total Assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total Liabilities and Stockholders' Equity $ $
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