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

Beginning cash balance on July 1: $69,000.

Budgeted 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. Sales amounts are May (actual), $1,830,000; June (actual), $1,380,000; and July (budgeted), $1,590,000.

Budgeted cash payments on merchandise purchases: 75% in the month of purchase and 25% in the month following purchase. Purchase amounts are June (actual), $440,000; and July (budgeted), $600,000.

Budgeted cash payments for salaries in July: $320,000.

Budgeted cash payments for sales commissions for July: $200,000.

Budgeted cash payment for income taxes in July: $100,000.

Budgeted cash payment for loan interest in July: $6,500.