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

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:

All sales are on account. Thirty percent of the credit sales are collected in the month of sale and the remaining are collected in the month subsequent to the sale. The accounts receivable at June 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 is paid in the month after the purchase.

The budgeted inventory balance at July is $

Depreciation expense is $ 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 $ expected cash disbursements for merchandise purchases of $ and cash paid for sell

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 incomeing and administrative expenses of $

Answer rating: 100% (QA)

Here are the detailed calculations a Budgeted sales Given cash collections of 30 of sales in the mon... View the full answer