Exercise 20-27A (Algo) Merchandising: Preparing a cash budget LO P4 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: $72,000. 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), $1,250,000; and July (budgeted), $1,540,000. 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), $570,000; and July (budgeted), $500,000. d. Budgeted cash payments for salaries in July: $120,000. e. Budgeted cash payments for sales commissions for July: $150,000. f. Budgeted cash payment for income taxes in July: $80,000. g. Budgeted cash payment for loan interest in July: $7,000.