Wolfpack Company is a merchandising company that is preparing a budget for the month of July....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Wolfpack Company is a merchandising company that is preparing a budget for the month of July. It has provided the following information: Assets Cash Wolfpack Company Balance Sheet June 30 Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable i Common stock Retained earnings Total liabilities and stockholders' equity Budgeting Assumptions: $ 91,400 55,600 48,800 237,000 $ 432, 800 $ 32,800 100,000 300,000 $ 432,800 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 $27,300. 4. Depreciation expense is $4,740 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 $102,100, expected cash disbursements for merchandise purchases of $47,100, and cash paid for selling and administrative expenses of $26,260. 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. Wolfpack Company is a merchandising company that is preparing a budget for the month of July. It has provided the following information: Assets Cash Wolfpack Company Balance Sheet June 30 Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable i Common stock Retained earnings Total liabilities and stockholders' equity Budgeting Assumptions: $ 91,400 55,600 48,800 237,000 $ 432, 800 $ 32,800 100,000 300,000 $ 432,800 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 $27,300. 4. Depreciation expense is $4,740 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 $102,100, expected cash disbursements for merchandise purchases of $47,100, and cash paid for selling and administrative expenses of $26,260. 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.
Expert Answer:
Answer rating: 100% (QA)
To calculate the budgeted figures for Wolfpack Company for the month of July well use the provided information and budgeting assumptions Lets go throu... View the full answer
Related Book For
Managerial Accounting
ISBN: 9781259275814
11th Canadian Edition
Authors: Ray H Garrison, Alan Webb, Theresa Libby
Posted Date:
Students also viewed these accounting questions
-
Emery Company sells small machine parts to heavy equipment manufacturers for an average price of $3.90 per part. There are two types of customers: those who place small, frequent orders and those who...
-
Wolf-pack Company is a merchandising company that is preparing a budget for the month of July. It has provided the following information: Wolf-pack Company Balance Sheet June 30 Assets Cash . . . . ....
-
A construction company is evaluating two projects, project A and project B. Project A has an expected profit of $200,000 with a standard deviation of $50,000, while project B has an expected profit...
-
5.Construct a Histogram for the frequency distribution below containing record high temperatures for each of the 50 states. Class boundaries Freq 99.5-104.5 104.5-109.5 109.5-114.5 114.5-119.5...
-
Give the phase and the specific volume. Discuss briefly.
-
Consider gravity loading only under complete lateral restraint in flat strata with properties given in Table 1.3. Vertical stress at the top of the geologic column given in Table 1.3 is 6.9 MPa....
-
Which of the following terms describe the types of adjusting entries? a. Deferrals and depreciation b. Expenses and revenues C. Deferrals and accruals d. Prepaid expenses and prepaid revenues
-
Albertson's Locksmith Corporation started operations on January 1, 2010. Albertson's estimates uncollectibles using the percentage-of-credit-sales method. The following information pertains to the...
-
Oceanic Company has 20,000 shares of cumulative preferred 1% stock, $50 par and 50,000 shares of $10 par common stock. The following amounts were distributed as dividends: 2011 2012 2013 $15,000...
-
Hope Still, chief executive of Great Divide Technologies (GDT), a state-certified aircraft repair company, worked with her local bank to get a $210,000 loan under the Paycheck Protection Program in...
-
6. (10pts) Consider the simple linear regression model Y = Bo + BX + e, with normal error, so e are iid N(0,02) random variables. Given n data points {(X,Y)=1, let bo and by be the least square...
-
Answer the following questions for the given Time-Scaled CPM Network: 2 3 4 5 6 7 8 9 10 11 12 13 14 A JM C B The TF for activity A is: D E LL F G K H Assume 7-day Work Calendar O
-
Cost of Goods Manufactured and Sold LeMans Company produces specialty papers at its Fox Run plant. At the beginning of June, the following information was supplied by its accountant: Direct materials...
-
Feed water enters a steam boiler at 1 0 bar pressure and 8 0 \ deg C and the mass The flow rate is 5 0 0 0 0 kg / h . Since saturated steam is produced from this steam boiler at 1 0 bar pressure, If...
-
How far above the floor is the bottom mirror? and What is the length of the mirror? A person stands in front of a mirror which is attached to a vertical wall. The height of the person from ground...
-
Fowler, Inc., has no debt outstanding and a total market value of $150,000. Earnings before interest and taxes, EBIT, are projected to be $26,000 if economic conditions are normal. If there is strong...
-
Focus on calendaring and deadlines in a law firm. Imagine you are a paralegal in a large law firm. You are constantly being given scheduling orders and deadlines for cases. One Friday you receive a...
-
Rowland Textile Inc. manufactures two products: sweatshirts and T-shirts. The manufacturing process involves two activities: cutting and sewing. Expected overhead costs and cost drivers are as...
-
Cardinal Company is considering a five-year project that would require a $2,975,000 investment in equipment with a useful life of five years and no salvage value . The company's discount rate is 14%....
-
Davis Division uses two raw materials-X33 and Z42-to produce its product called Base 23, a chemical base for interior house paint. The materials are mixed in the following standard proportions to...
-
Conceptually, what does the project profitability index represent? How should it be used to compare competing investment projects?
-
Jordan Quinn manages the local homeless shelter. He fears that a trusted employee has been stealing from the shelter. This employee receives cash from supporters and also prepares the monthly bank...
-
Refer to question 6. The balance of Allowance for Uncollectible Accounts, after adjustment, will be a. $ 100 $ 100 . b. $ 200 $ 200 . c. $ 300 $ 300 . d. impossible to determine from the information...
-
Refer to questions 6 and 7. Early the following year, Harper wrote off \(\$ 150\) of old receivables as uncollectible. The balance in the Allowance account is now The next four questions use the...
Study smarter with the SolutionInn App