Use the information in Exercise 23-3 and the following additional information to prepare a budgeted income statement for the month of July and a budgeted balance sheet for July 31.
a. Cost of goods sold is 44% of sales.
b. Inventory at the end of June is $80,000 and at the end of July is $64,000.
c. Salaries payable on June 30 are $50,000 and are expected to be $40,000 on July 31.
d. The equipment account balance is $1,600,000 on July 31. On June 30, the accumulated depreciation on equipment is $280,000.
e. The $6,600 cash payment of interest represents the 1% monthly expense on a bank loan of $660,000.
f. Income taxes payable on July 31 are $124,320, and the income tax rate applicable to the company is 30%.
g. The only other balance sheet accounts are: Common Stock, with a balance of $600,000 on June 30; and Retained Earnings, with a balance of $1,072,000 on June 30.