28 Exercise 20-25A Merchandising: Preparing a cash budget LO P4 075 points Use the following information to prepare the July cash budget for Acco Co. It should show expected cash receipts and cash payments for the month and the cash balance expected on July 31 Sed co o. Beginning cash balance on July 1 $68.000 b. Cash receipts from sales: 15% is collected in the month of sale, 50% in the next month, and 35% in the second month after sale luncollectible accounts are negligible and can be ignored). Sales amounts are May (actual), 51,870,000, June (actual), 51,400,000, and July (budgeted) $1,420,000, c. Payments on merchandise purchases 75% in the month of purchase and 25% in the month following purchase. Purchases amounts are: June (actual), $480,000, and July (budgeted) $520,000 d. Budgeted cash payments for salaries in July $180.000 e. Budgeted depreciation expense for July $12,000 1. Other cash expenses budgeted for July: $230,000 g. Accrued income taxes due in July: $80,000 h, Bank loan interest paid in July $8,500 Hint Prim rences Complete this question by entering your answers in the tabs below. Calculation Cash Budget Calculate the budgeted cash receipts and cash payment Calculation of Cash Receipts from Sales Collected in Total Sales May June July July 31 Accounts Rec 5 Credit sal from May June My Total 1,870.000 1400.000 +420.000 4690.000 5 $ Os 05