Answered step by step
Verified Expert Solution
Question
1 Approved Answer
28 Exercise 20-25A Merchandising: Preparing a cash budget LO P4 0.75 points Use the following information to prepare the July cash budget for Acco Co.
28 Exercise 20-25A Merchandising: Preparing a cash budget LO P4 0.75 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. Skipped eBook Hint Print a. Beginning cash balance on July 1: $70,000. b. Cash receipts from sales: 30% is collected in the month of sale, 50% in the next month, and 20% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are May (actual), $1,780,000; June (actual), $1,260,000; and July (budgeted), $1,530,000. c. Payments on merchandise purchases: 85% in the month of purchase and 15% in the month following purchase. Purchases amounts are: June (actual), $600,000; and July (budgeted), $530,000. d. Budgeted cash payments for salaries in July: $320,000. e. Budgeted depreciation expense for July: $13,000. f. Other cash expenses budgeted for July: $100,000. g. Accrued income taxes due in July: $90,000. h. Bank loan interest paid in July: $6,000. References 28 Calculation Cash Budget Calculate the budgeted cash receipts and cash payments. 0.75 points Calculation of Cash Receipts from Sales ----Collected in----- Skipped July 31 Accounts Rec. Total Sales May June July Credit sales from: eBook May $ Hint June 1,780,000 1,260,000 1,530,000 4,570,000 Print July References Totals $ $ 0 0 $ 0 $ 0 Calculation of Cash Payments for Merchandise ---Paid in July 31 Total Purchases June July Accounts Pay. Purchases from June $ 600,000 July 530,000 Totals $ 1,130,000 $ 0 $ 0 $ 0 28 Calculation Cash Budget Prepare the July cash budget for Acco Co. 0.75 points ACCO CO. Skipped Cash Budget For the Month Ended July 31 eBook Hint Total cash available Cash payments for: Print References Total cash payments $ 0
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started