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a . Beginning cash balance on July 1 : $ 7 2 , 0 0 0 . b . Budgeted cash receipts from sales: 2

a. Beginning cash balance on July 1: $72,000.
b. Budgeted cash receipts from sales: 20% is collected in the month of sale, 50% in the next month, and 30% in the second month after sale. Sales amounts are May (actual), $1,970,000; June (actual), $1,370,000; and July (budgeted), $1,460,000.
c. Budgeted cash payments on merchandise purchases: 85% in the month of purchase and 15% in the month following purchase. Purchase amounts are June (actual), $460,000; and July (budgeted), $780,000.
d. Budgeted cash payments for salaries in July: $320,000.
e. Budgeted cash payments for sales commissions for July: $230,000.
f. Budgeted cash payment for income taxes in July: $70,000.
g. Budgeted cash payment for loan interest in July: $7,500.
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Calculation
Cash Budget
Calculate the budgeted cash receipts and cash payments.
a. Beginning cash balance on July 1: $72,000.
b. Budgeted cash receipts from sales: 20% is collected in the month of sale, 50% in the next month, and 30% in the second month after sale. Sales amounts are May (actual), $1,970,000; June (actual), $1,370,000; and July (budgeted), $1,460,000.
c. Budgeted cash payments on merchandise purchases: 85% in the month of purchase and 15% in the month following purchase. Purchase amounts are June (actual), $460,000; and July (budgeted), $780,000.
d. Budgeted cash payments for salaries in July: $320,000.
e. Budgeted cash payments for sales commissions for July: $230,000.
f. Budgeted cash payment for income taxes in July: $70,000.
g. Budgeted cash payment for loan interest in July: $7,500.
Complete this question by entering your answers in the tabs below.
Calculation
Cash Budget
Prepare the July cash budget for Acco Company.
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