Stanmore Stationery is preparing a quarterly budget covering the 3 months ending 30 June 2017. The information available for the budget is as follows:

1. Cash sales represent 30% of all monthly sales; 50% of all credit sales are collected in the month of sale and the remainder are collected in the month following the sale.

2. Inventory purchases that are made on account equal 60% of the sales forecast for that month; 40% of the purchases are paid for in the month of purchase, and 60% are paid for in the following month.

3. Ending inventory on 30 June 2017 is projected to be $34600.

4. Equipment purchases at the end of June are budgeted at $57000.

5. Other quarterly expenses are budgeted as follows: electricity, $8800; rent, $33000; salaries, $92000. These expenses are paid when incurred.

6. Depreciation for the quarter is $8400.

7. The balance sheet as at 1 April 2017 will have the following account balances:

Cash at bank Accounts receivable Inventory Equipment

$17820 58960 36200 172500

Accumulated depreciation Accounts payable Share capital Retained earnings

$56300 51120 100000 78060

8. Budgeted sales are: April, $142000; May, $136000; June, $132000.

Required

Prepare a budgeted income statement and balance sheet for the quarter ending 30 June 2017. Ignore income tax.