Following information relates to Acco Co.

1. Beginning cash balance on July 1: $50,000.
2. Cash receipts from sales: 27% is collected in the month of sale, 50% in the next month, and 23% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are: May (actual), $1,720,000; June (actual), $1,200,000; and July (budgeted), $1,400,000.
3. Payments on merchandise purchases: 54% in the month of purchase and 46% in the month following purchase. Purchases amounts are: June (actual), $430,000; and July (budgeted), $600,000.
4. Budgeted cash payments for salaries in July: $211,000.
5. Budgeted depreciation expense for July: $12,000.
6. Other cash expenses budgeted for July: $150,000.
7. Accrued income taxes due in July: $80,000.
8. Bank loan interest paid in July: $6,600.

Additional Information:

1. Cost of goods sold is 40% of sales.
2. Inventory at the end of June is $80,000 and at the end of July is $120,000.
3. Salaries payable on June 30 are $50,000 and are expected to be $40,000 on July 31.
4. The equipment account balance is $1,600,000 on July 31. On June 30, the accumulated depreciation on equipment is $280,000.
5. The $6,600 cash payment of interest represents the 1% monthly expense on a bank loan of $660,000.
6. Income taxes payable on July 31 are $164,640, and the income tax rate is 35%.
7. The only other balance sheet accounts are Common Stock, with a balance of $661,800 on June 30; and Retained Earnings, with a balance of $1,072,000 on June 30.

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

Complete this question by entering your answers in the tabs below.

• Calculation: Calculate the budgeted cash receipts and cash payments.
• Inc Stmt Bal Sheet: Prepare a budgeted income statement for the month of July and a budgeted balance sheet for July 31.