Question:
Russell Company has the following projected account balances for June 3O, 19x1:
Accounts payable___________________$40,000
Accounts receivable________________100,000
Depreciation, factory_______________24,000
Inventories (5/31 & 6/30)__________180,000
Direct materials used______________200,000
Office salaries_____________________80,000
Insurance, factory___________________4,000
Plant wages________________________140,000
Bonds payable______________________160,000
Sales______________________________800.000
Capital stock______________________400,000
Retained earnings________________________?
Cash________________________________56,000
Equipment, net_____________________240,000
Buildings, net_____________________400,000
Utilities, factory__________________16,000
Selling expenses____________________60,000
Maintenance, factory________________28,000
Prepare a budget income statement for June 19x1.