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Russell Company has the following projected account balances for June 30, 2016:

   Accounts payable   $80,000   Sales   $1,600,000
   Accounts receivable   200,000   Capital stock   800,000
   Depreciation, factory   48,000   Retained earnings   ?
   Inventories (5/31 & 6/30)   360,000   Cash   112,000
   Direct materials used   400,000   Equipment, net   480,000
   Office salaries   160,000   Buildings, net   800,000
   Insurance, factory   8,000   Utilities, factory   32,000
   Plant wages   280,000   Selling expenses   120,000
   Bonds payable   320,000   Maintenance, factory   56,000

Required:
a.   Prepare a budgeted income statement for June 2016
b.   Prepare a budgeted balance sheet as of June 30, 2016

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