Exercise 07-25A Merchandising: Preparing a cash budget LO P4 Use the following information to prepare the July cash budget for Acco Co. it should show expected con receipts and canh payments for the month and the cash balance expected on July 31 a. Beginning cash balance on July 1: $67,000 b. Cash receipts from sales: 15% is collected in the month of sale, 50% in the next month, and 35% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are May (actual). 51,880,000, June factual), 51220.000, and July (budgeted) $1,370,000. c. Payments on merchandise purchases. 70% in the month of purchase and 30% in the month following purchase. Purchases amounts are: June (actual). $480,000; and July (budgeted). $430,000. d. Budgeted cash payments for salaries in July $300,000 e. Budgeted depreciation expense for July: $13,000 f. Other cash expenses budgeted for July $220,000 9. Accrued income taxes due in July $90,000, h. Bank loan interest paid in July $6,500 Complete this question by entering your answers in the tabs below. Calculation Cash Budget Calculate the budgeted cash receipts and cash payments. Calculation of Cash Receipts from Sales Calculation Cash Budget Calculate the budgeted cash receipts and cash payments. Calcuttan at Can Receptor Sale Collected in Total Sales May June July 31 Accounts Rec. July Credit sales from $ May June 1.880,000 1,220,000 July 1.370.000 4,470,000 $ Totals $ 0 S 0 $ Os 0 Calculation of Cash Payments for Merchandise Paid in July 31 June Total Purchases July Accounts Pay Purchases from: June $ 480,000 July 430,000 910,000 $ 0 $ 0 0$ S Totals Cash Budont> Calculation Cash Bulmet Prepare the July cash budget for Acco Co. ACCO CO. Cash Budget For the Month Ended July 31 Total cash available Cash payments for Total cash payments S 0