Following information relates to Acco Co.

a.	Beginning cash balance on July 1: $35,000.
b.	Cash receipts from sales: 24% is collected in the month of sale, 50% in the next month, and 26% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are: May (actual), $1,204,000; June (actual), $840,000; and July (budgeted), $980,000.
c.	Payments on merchandise purchases: 48% in the month of purchase and 52% in the month following purchase. Purchases amounts are: June (actual), $301,000; and July (budgeted), $600,000.
d.	Budgeted cash disbursements for salaries in July: $147,700.
e.	Budgeted depreciation expense for July: $8,400.
f.	Other cash expenses budgeted for July: $105,000.
g.	Accrued income taxes due in July: $80,000 (related to June).
h.	Bank loan interest paid July 31: $4,620.

Additional Information:
a.	Cost of goods sold is 35% of sales.
b.	Inventory at the end of June is $56,000 and at the end of July is $313,000.
c.	Salaries payable on June 30 are $35,000 and are expected to be $28,000 on July 31.
d.	The equipment account balance is $1,120,000 on July 31. On June 30, the accumulated depreciation on equipment is $196,000.
e.	The $4,620 cash payment of interest represents the 1% monthly expense on a bank loan of $462,000.
f.	Income taxes payable on July 31 are $132,398, and the income tax rate applicable to the company is 35%.
g.	The only other balance sheet accounts are: Common Stock, with a balance of $482,520 on June 30; and Retained Earnings, with a balance of $750,400 on June 30.

Prepare a budgeted income statement for the month of July and a budgeted balance sheet for July 31.

A. Calculation of cash receipts from sales:

	Total Sales	May	June	July	Accounts Rec.
Credit Sales From:
May	1,204,000
June	840,000
July	980,000
Totals	3,024,000

B. Calculation of cash payments for merchandise:

	Total Purchases	June	July	Accounts Pay.
Purchases from:
June	301,000
July	600,000
Totals	901,000

C. ACCO Company Budgeted Income Statement For Month Ended July 31

Operating Expenses
Total Operating Expenses

D. ACCO Company Budgeted Balance Sheet As of July 31

Assets
Liabilities & Equity
Liabilities
Stockholders' Equity