Use the following information to prepare a budgeted balance sheet for Grover Company for the month of June. The budgeted net income for the month of June is $236,000. The beginning cash balance is $62,000; total budgeted cash receipts are $1,660,000; total budgeted cash disbursements are $1,580,000. Budgeted sales for June are $1,700,000. Collections are 40% in the month of sale and 60% in the month following. The projected inventory balance is 10% of the following month's sales. Sales for July are projected to be $1,750,000. Budgeted purchases for June are $900,000 to be paid 80% in the month of purchase and 20% in the month following. The equipment account balance is $1,400,000 on May 31. No equipment purchases or disposals were made during June. On May 31, the accumulated depreciation is $276,000. Depreciation expense for June is estimated to be $24,000. There is an outstanding loan balance of $800,000. Accrued income taxes payable for June 30 are $71,000; and salaries payable are $50,000. The only other balance sheet accounts are: Common Stock, with a balance of $800,000 on May 31, and Retained Earnings with a balance of $300,000 on May 31. No additional common stock was issued and no dividends were paid during June.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter9: Profit Planning And Flexible Budgets

Section: Chapter Questions

Problem 72P: Cash Budget The controller of Feinberg Company is gathering data to prepare the cash budget for...

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Use the following information to prepare a budgeted balance sheet for Grover Company for the month of June.

The budgeted net income for the month of June is $236,000.
The beginning cash balance is $62,000; total budgeted cash receipts are $1,660,000; total budgeted cash disbursements are $1,580,000.
Budgeted sales for June are $1,700,000. Collections are 40% in the month of sale and 60% in the month following.
The projected inventory balance is 10% of the following month's sales. Sales for July are projected to be $1,750,000.
Budgeted purchases for June are $900,000 to be paid 80% in the month of purchase and 20% in the month following.
The equipment account balance is $1,400,000 on May 31. No equipment purchases or disposals were made during June. On May 31, the accumulated depreciation is $276,000. Depreciation expense for June is estimated to be $24,000.
There is an outstanding loan balance of $800,000.
Accrued income taxes payable for June 30 are $71,000; and salaries payable are $50,000.
The only other balance sheet accounts are: Common Stock, with a balance of $800,000 on May 31, and Retained Earnings with a balance of $300,000 on May 31. No additional common stock was issued and no dividends were paid during June.

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