Exercise $20-27$A $($Algo$)$ Merchandising: Preparing a cash budget LO P$4$

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 $1$: $$74,000.$

b$.$ Budgeted cash receipts from sales: $30\%$ is collected in the month of sale, $50\%$ in the next month, and $20\%$ in the second month after sale. Sales amounts are May $($actual$),$ $$1,730,000$; June $($actual$),$ $$1,380,000$; and July $($budgeted$),$ $$1,440,000.$

c$.$ Budgeted cash payments on merchandise purchases: $65\%$ in the month of purchase and $35\%$ in the month following purchase. Purchase amounts are June $($actual$),$ $$510,000$; and July $($budgeted$),$ $$770,000.$

d$.$ Budgeted cash payments for salaries in July: $$110,000.$

e$.$ Budgeted cash payments for sales commissions for July: $$120,000.$

f$.$ Budgeted cash payment for income taxes in July: $$90,000.$

g$.$ Budgeted cash payment for loan interest in July: $$9,500.$

Complete this question by entering your answers in the tabs below.

Calculation

Cash Budget

Calculate the budgeted cash receipts and cash payments.

$\backslash$table$[[$Calculation of Cash Receipts from Sales$],[,$Total Sales,,$\backslash$table$[[$July $31],[$Accounts$],[$Receivable$]],,],[,$May,July,$],[$Credit sales from:,,$,,,],[$May$,1,730,000,,,,]]$