Exercise 20-25A Merchandising: Preparing a cash budget LO P4 Use the following information to prepare the July cash budget for Acco Co. It should show expected cash receipts and cash payments for the month and the cash balance expected on July 31 a. Beginning cash balance on July t 675,000 b. Cash receipts from sales: 40% is collected in the month of sale, 50% in the next month and 10% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are May (actual), 51.810,000: June (actual). $1,410,000 and July (budgeted) $1.590,000 c. Payments on merchandise purchases: 70% in the month of purchase and 30% in the month following purchase. Purchases amounts are: June (actual). $560,000, and July (budgeted), $730,000. d. Budgeted cash payments for salaries in July $270,000 e. Budgeted depreciation expense for July $14,000 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 $8.000 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 Collected in Total Sales May June July 31 Accounts Rec. July 5 Cred sales from May June July Tools 1,010,000 1.410 000 1.500.000 4,810.000 5 5 05 5 0 Call of Caliments for Merchandise Pad July 1 Tomat Purchase July Accounts Pay Pues from $ 50 000 750 100 1290000 0 Cash Bul> Exercise 20-25A Merchandising: Preparing a cash budget LO P4 Use the following information to prepare the July cash budget for Acco Cott should show expected cash receipts and cash payments for the month and the cash balance expected on July 31 a. Beginning cash balance on July 1 $75.000 b. Cash receipts from sales 40% is collected in the month of sale, 50% in the next month, and 10% in the second month after sale (uncollectible accounts are negligible and can be ignored) Sales amounts are May (actual $1.810,000, June actual). $1.410.000; and July (budgeted) $1.590.000, c. Payments on merchandise purchases 70% in the month of purchase and 30% in the month following purchase Purchases amounts are June (actual). $560,000, and Uuly (budgeted) $730,000 d. Budgeted cash payments for salaries in July $270,000, e. Budgeted depreciation expense for July: $14.000 t. Other cash expenses budgeted for July $150.000, g. Accrued income taxes due in July $80,000 h. Bank loan interest paid in July $8.000, Complete this question by entering your answers in the tabs below. Calculation Cast Budget Prepare the July caly budget for Acco C. ACCO CO. , Cass Budget For the Month Ended July 31 Total Gasthuvailable Cash payments for Totalcach 0 Cabution