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Homework

Use the following information to prepare the July cash budget for Acco Company. Ignore the "Loan activity" section of the budget

a$.$ Beginning cash balance on July $1$:$$77,000.$

b$.$ Budgeted cash receipts from sales: $25\%$ is collected in the month of sale, $50\%$ in the next month, and $25\%$ in the second month after sale. Sales amounts are May $($actual$),$ $$1,780,000$; June $($actual$),$ $$1,490,000$; and July $($budgeted$),$ $$1,400,000.$

c$.$ Budgeted cash payments on merchandise purchases: $70\%$ in the month of purchase and $30\%$ in the month following purchase. Purchase amounts are June $($actual$),$ $$530,000$; and July $($budgeted$),$ $$420,000.$

d$.$ Budgeted cash payments for salaries in July: $$190,000.$

e$.$ Budgeted cash payments for sales commissions for July: $$240,000.$

f$.$ Budgeted cash payment for income taxes in July: $$50,000.$

g$.$ Budgeted cash payment for loan interest in July: $$8,000.$

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Calctilation

Calculate the budgeted cash receipts and cash payments.

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