Following information relates to Acco Co. a. Beginning cash balance on July 1: $45,000. b. 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 (uncollectible accounts are negligible and can be ignored). Sales amounts are: May (actual). $1,548,000; June (actual). $1,080,000; and July (budgeted). $1,260,000. c. Payments on merchandise purchases: 60% in the month of purchase and 40% in the month following purchase. Purchases amounts are: June (actual). $387.000; and July (budgeted) $600,000. d. Budgeted cash payments for salaries in July: $189,900. e. Budgeted depreciation expense for July: $10,800. f. Other cash expenses budgeted for July: $135,000. g. Accrued income taxes due in July: $80,000. h. Bank loan interest paid in July: $5.940. Additional Information: a. Cost of goods sold is 44% of sales. b. Inventory at the end of June is $72,000 and at the end of July is $117,600. c. Salaries payable on June 30 are $45.000 and are expected to be $36,000 on July 31. d. The equipment account balance is $1,440,000 on July 31. On June 30, the accumulated depreciation on equipment is $252.000 e. The $5,940 cash payment of interest represents the 1% monthly expense on a bank loan of $594,000. f. Income taxes payable on July 31 are $130,536, and the income tax rate is 35%. 9. The only other balance sheet accounts are common Stock, with a balance of $532,000 on June 30, and Retained Earnings. with a balance of $964,800 on June 30. Prepare a budgeted income statement for the month of July and a budgeted balance sheet for July 31. Calculation Inc Stmt Bal Sheet Calculate the budgeted cash receipts and cash payments. Calculation of Cash Receipts From Sales ................-Collected in-................. Total Sales May June July July 31 Accounts Rec. Credit sales from: May $ June 1,548,000 1,080,000 1,260,000 3,888,000 July Totals $ Calculation of Cash Payments for Merchandise ----------Paid in-------- July 31 Accounts Pay. Total Purchases June July Purchases from: June $ July 387,000 600,000 987,000 Totals $ ACCO CO. Budgeted Income Statement For Month Ended July 31 Operating expenses: Total operating expenses ACCO CO. Budgeted Balance Sheet As of July 31 Assets Liabilities and Equity Liabilities Stockholders' Equity