3.00 points Exercise 20-25A Merchandising: Preparing a budgeted income statement and balance sheet LO PA Following information relates to Acco Co a. Beginning cash balance on July 1:$30,000 b. Cash receipts from sales: 30% is colected in the month of sale, 50% in the next month, and 20% in the second month afer sale (uncollectible accounts are negligible and can be ignored). Sales amounts are: May (actual), $1,032,000, June (actual), $720,000, and July (budgeted), $840,000. c. Payments on merchandise purchases: 60% in the month of purchase and 40% in the month following amounts are sine la 500 ,000. d. Budgeted cash disbursements for salaries in July: $126,600. e. Budgeted depreciation expense for July. $7.200 t. Other cash expenses budgeted for July $90,000 9. Accrued income taxes due in July: $80,000 h. Bank loan interest paid July 31: $3,960 Additional Information b. Inventory at the end of June is $48,000 and at the end of July is $278400. c. Salarles payable on June 30 are $30,000 and are expected to be $24,000 on July 31 d. The equigment account balance is $960,000 on July 31. On June 30, the accumulated depreciation on equipment is $168,000 e. The S3.960 cash payment of interest represents tho 1% morthy expense on a bank loan of S306.000. t. Income taxes payable on July 31 are $09,456, and the income tax rate applicable to the company is 40% g. The only other balance sheet acoounts are: Common Stock, with a balance of $328,000 on June 30; and Retairved Eamings, with a balance of $643.200 on June 30 Prepare a budgeted income statement for the month of July and a budgeted balance sheet for July 31