2 Following information relates to Acco Co. 2.66 points a. Beginning cash balance on July 1: $45,000. b. Cash receipts from sales: 24% is collected in the month of sale, 50% in the next month, and 26% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are: May (actual), S1,548,000; June (actual), $1,080,000; and July (budgeted), $1,260,000. c. Payments on merchandise purchases: 48% in the month of purchase and 52% in the month following purchase. Purchases amounts are: June (actual), $387,000; and July (budgeted) $600,000. d. Budgeted cash payments for salaries in July: $189,900. e. Budgeted depreciation expense for July: $10,800. f. Other cash expenses budgeted for July: $135,000. g. Accrued income taxes due in July: $80,000. h. Bank loan interest paid in July: $5,940. Additional Information: a. Cost of goods sold is 35% of sales. b. Inventory at the end of June is $72,000 and at the end of July is $231,000. c. Salaries payable on June 30 are $ 45,000 and are expected to be $36,000 on July 31. d. The equipment account balance is $1,440,000 on July 31. On June 30, the accumulated depreciation on equipment is $252,000. e. The $5,940 cash payment of interest represents the 1% monthly expense on a bank loan of $594,000. f. Income taxes payable on July 31 are $170,226, and the income tax rate is 35%. g. The only other balance sheet accounts are common Stock, with a balance of $643,240 on June 30; and Retained Earnings, with a balance of $964,800 on June 30. Complete this question by entering your answers in the tabs below. Calculation Inc Stmt Bal Sheet Calculate the budgeted cash receipts and cash payments. Calculation of Cash Receipts From Sales -----...--Collected in Total Sales June July Credit sales from: May $ 1,548,000 $ 371,520 $ 774,000 $ 402,480 June 1,080,000 0 259,200 540,000 May July 31 Accounts Rec. 0 280.800 July 1,260,000 0 0 302,400 $ 1,244,880 957,600 $ 1,238,400 Totals $ 3,888,000 $ 371,520 $ 1,033,200 Calculation of Cash Payments for Merchandise ---Paid in-.. Total Purchases July 31 Accounts Pay. June July Purchases from: June $ 387,000 $ 185,760 $ 201,240 $ 0 600,000 0 288,000 July Totals 312,000 312,000 $ 987,000 $ 185,760 $ 489,240 $ Complete this question by entering your answers in the tabs below. Calculation Inc Stmt Bal Sheet Prepare a budgeted income statement for the month of July and a budgeted balance sheet for July 31. ACCO CO. Budgeted Income Statement For Month Ended July 31 Sales $1,260,000 Cost of goods sold 441,000 Gross profit 819,000 Operating expenses: Salaries expense 180,900 Depreciation expense 10,800 Other cash expenses 135,000 Bank loan interest expense 5,940 OOOO 332,640 Total operating expenses Income before taxes Income tax expense Net income 486,360 194,544 $ 291,816 ACCO CO. Budgeted Balance Sheet As of July 31 Assets $ 389,800 1,238,400 231,000 Cash Accounts receivable Inventory Total current assets Equipment Accumulated depreciation 1,859,200 1,440,000 262,800 Bank loan interest uxpurise >> 3,940 Total operating expenses Income before taxes Income tax expense Net income 332,640 486,360 194,544 $ 291,816 ACCO CO. Budgeted Balance Sheet As of July 31 Assets Cash 389,800 Accounts receivable Inventory 1,238,400 231,000 Total current assets 1,859,200 1,440,000 262,800 1,177,200 $3,036,400 $ 312,000 36,000 Equipment Accumulated depreciation Equipment, net Total assets Liabilities and Equity Liabilities Accounts payable Salaries payable Income taxes payable Total current liabilities Bank loan payable Total liabilities Stockholders' Equity Common stock Retained earnings Total Stockholders' equity Total Liabilities and Equity 194,544 542,544 594,000 1,136,544 643,240 1,256,616 1,899,856 $3,036,400