Use the Following Information to Prepare a Budgeted Income Statement

Essay

Use the following information to prepare a budgeted income statement for Stellar Company for the month of June.
a.Beginning cash balance on June 1 is $52,000.
b.Sales amounts are: April (actual),$1,450,000,May (actual),$1,600,000,and June (budgeted),$1,700,000.
c.Cost of goods sold is 53% of sales.
d.Budgeted cash payments for salaries in June: $260,000.Salaries payable on May 31 are $60,000 and are expected to be $50,000 on June 30.
e.Budgeted depreciation expense for June: $24,000.
f.Other cash expenses budgeted for June: $282,000.
g.Accrued income taxes due in June: $48,000.
h.Bank loan interest due in June: $8,000 which represents the 1% monthly expense on a bank loan of $800,000.
i.The income tax rate applicable to the company is 30%.