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Wolfpack Company is a merchandising company that is preparing a budget for the month of July. It 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 Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 92,200 52,400 40,800 219,000 $ 404,400 $34,400 100,000 270,000 $ 404,400 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 purcha are account. Twenty percent of merchandise inventory purchases are paid in the month of the purchase and the remaining 80% are paid in the month after the purchase. 3. The budgeted inventory balance at July 31 is $10,700. 4. Depreciation expense is $4,380 per month. All other selling and administrative expenses are paid in full in the month the expense is incurred. Required: 1. For the month of July, calculate the following: 5. The company's cash budget for July shows expected cash collections of $93,200, expected cash disbursements for merchandise purchases of $44,700, and cash paid for selling and administrative expenses of $22,820.

Wolfpack Company is a merchandising company that is preparing a budget for the month of July. It 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 Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 92,200 52,400 40,800 219,000 $ 404,400 $34,400 100,000 270,000 $ 404,400 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 purcha are account. Twenty percent of merchandise inventory purchases are paid in the month of the purchase and the remaining 80% are paid in the month after the purchase. 3. The budgeted inventory balance at July 31 is $10,700. 4. Depreciation expense is $4,380 per month. All other selling and administrative expenses are paid in full in the month the expense is incurred. Required: 1. For the month of July, calculate the following: 5. The company's cash budget for July shows expected cash collections of $93,200, expected cash disbursements for merchandise purchases of $44,700, and cash paid for selling and administrative expenses of $22,820.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Wolfpack Company is a merchandising company that is preparing a budget for the month of July. It 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 Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity 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% are paid in the month after the purchase. 3. The budgeted inventory balance at July 31 is $10,700. 4. Depreciation expense is $4,380 per month. All other selling and administrative expenses are paid in full in the month the expense is incurred. Required: 1. For the month of July, calculate the following: $ 92,200 52,400 40, 800 219,000 $ 404,400 5. The company's cash budget for July shows expected cash collections of $93,200, expected cash disbursements for merchandise purchases of $44,700, and cash paid for selling and administrative expenses of $22,820. a. Budgeted sales b. Budgeted merchandise purchases $ 34,400 100,000 270,000 $ 404,400 c. Budgeted cost of goods sold d. Budgeted net operating income
Transcribed Image Text:Wolfpack Company is a merchandising company that is preparing a budget for the month of July. It 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 Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity 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% are paid in the month after the purchase. 3. The budgeted inventory balance at July 31 is $10,700. 4. Depreciation expense is $4,380 per month. All other selling and administrative expenses are paid in full in the month the expense is incurred. Required: 1. For the month of July, calculate the following: $ 92,200 52,400 40, 800 219,000 $ 404,400 5. The company's cash budget for July shows expected cash collections of $93,200, expected cash disbursements for merchandise purchases of $44,700, and cash paid for selling and administrative expenses of $22,820. a. Budgeted sales b. Budgeted merchandise purchases $ 34,400 100,000 270,000 $ 404,400 c. Budgeted cost of goods sold d. Budgeted net operating income
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. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 1C Required 1D Required 2 Calculate the budgeted sales for the month of July. Budgeted sales for July Required 1A Required 1B >
Transcribed Image Text: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. Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 1C Required 1D Required 2 Calculate the budgeted sales for the month of July. Budgeted sales for July Required 1A Required 1B >
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