8 Following information relates to Acco Co. a. Beginning cash balance on July 1: $50,000. b. Cash receipts from sales: 27% is collected in the month of sale, 50% in the next month, and 23% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are: May (actual). $1720,000: June (actual). $1,200,000; and July (budgeted) $1,400,000 c. Payments on merchandise purchases: 54% in the month of purchase and 46% in the month following purchase. Purchases amounts are: June (actual). $430,000, and July (budgeted). $600,000 d. Budgeted cash payments for salaries in July: $211,000. e. Budgeted depreciation expense for July: $12,000 f. Other cash expenses budgeted for July $150,000. 9. Accrued income taxes due in July: $80,000 h. Bank loan interest paid in July: $6,600. Book Hint Print Additional Information a. Cost of goods sold is 40% of sales b. Inventory at the end of June is $80,000 and at the end of July is $120,000 c. Salaries payable on June 30 are $50,000 and are expected to be $40,000 on July 31. d. The equipment account balance is $1.600,000 on July 31. On June 30, the accumulated depqeciation on equipment is $280,000. e. The $6,600 cash payment of interest represents the 1% monthly expense on a bank loan of $660,000. f. Income taxes payable on July 31 are $164,640, and the income tax rate is 35% g. The only other balance sheet accounts are common Stock, with a balance of $661.800 on June 30, and Retained Earnings, with a balance of $1.072.000 on June 30. Prepare a budgeted income statement for the month of July and a budgeted balance sheet for July 31. Prepare a budgeted income statement for the month of July and a budgeted balance sheet for July 31. Complete this question by entering your answers in the tabs below. Calculation Inc Stmt Bal Sheet ok + Calculate the budgeted cash receipts and cash payments. Calculation of Cash Receipts From Sales -Collected in- July 31 Total Sales May June July Accounts Rec. Credit sales from: May $ 1.720,000 $ 464,400 $ 860,000 $ 395,600 $ 0 June 1,200,000 324,000 600,000 276,000 July 1.400,000 378,000 1,022,000 Totals $ 4,320,000 $ 464,400 $ 1,184,000 $1,373.600 $ 1.298,000 ht Calculation of Cash Payments for Merchandise Paid in July 31 Total Purchases June July Accounts Pay Purchases from: June $ 430,000 $ 232,200 $ 197,800 $ 0 600,000 July Totals 324,000 $ 1,030,000 $ 276,000 276,000 232.200 $ 521,800 $ Inc Stmt Bal Sheet> ework 4 Saved 3. Prepare a budgeted income statement for the month of July and a budgeted balance sheet for July 31. Complete this question by entering your answers in the tabs below. Calculation Inc Stmt Bal Sheet Book Prepare a budgeted Income statement for the month of July and a budgeted balance sheet for July 31. Hint Print $ 1,400,000 560,000 ACCO CO. Budgeted Income Statement For Month Ended July 31 Sales Cost of goods sold Gross profit Operating expenses: Salaries expense 201,000 Depreciation expense 12,000 Other cash expenses 150,000 Bank loan interest expense 6,600 840,000 Total operating expenses Income before taxes 369,600 470,400 127,008 343,392 Income tax expense Net income $ ACCO CO. Rua Ranch C Taw Prey 8 of 8 Next 8 ACCO CO. Budgeted Balance Sheet As of July 31 Assets 10 points Cash Accounts receivable 454,800 1,298,000 120,000 Inventory Total current assets 1,872,800 eBook Equipment Accumulated depreciation Equipment, net 1,600,000 292,000 Hint 1,308,000 Total assets $ 3,180,800 Print Liabilities and Equity Liabilities $ 276,000 120,000 Accounts payable Salaries payable Income taxes payable Total current liabilities Bank loan payable Total liabilities Stockholders' Equity 396,000 660,000 1,056,000 Common stock 600,000 1,415,392 Retained earnings Total Stockholders' equity Total Liabilities and Equity 2,015,392 $ 3,071,392