Following information relates to Acco Co.

1. Beginning cash balance on July 1: $30,000.
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), $1,032,000; June (actual), $720,000; and July (budgeted), $840,000.
3. Payments on merchandise purchases: 54% in the month of purchase and 46% in the month following purchase. Purchases amounts are: June (actual), $258,000; and July (budgeted), $600,000.
4. Budgeted cash payments for salaries in July: $126,600.
5. Budgeted depreciation expense for July: $7,200.
6. Other cash expenses budgeted for July: $90,000.
7. Accrued income taxes due in July: $80,000.
8. Bank loan interest paid in July: $3,960.

Additional Information:

1. Cost of goods sold is 40% of sales.
2. Inventory at the end of June is $48,000 and at the end of July is $312,000.
3. Salaries payable on June 30 are $30,000 and are expected to be $24,000 on July 31.
4. The equipment account balance is $960,000 on July 31. On June 30, the accumulated depreciation on equipment is $168,000.
5. The $3,960 cash payment of interest represents the 1% monthly expense on a bank loan of $396,000.
6. Income taxes payable on July 31 are $98,784, and the income tax rate is 35%.
7. The only other balance sheet accounts are Common Stock, with a balance of $365,080 on June 30; and Retained Earnings, with a balance of $643,200 on June 30.

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

Prepare a budgeted income statement for the month of July and a budgeted balance she ACCO CO. Budgeted Income Statement For Month Ended July 31 Sales 340,000 Cost of goods sold 336,000 504,000 Gross profit Operating expenses: Salaries expense Depreciation expense Other cash expenses 7,200 90,000 Bank loan interest expense 97,200 Total operating expenses Income before taxes Income tax expense 406,800 98,784 308,016 Net income $ Budgeted Balance Sheet As of July 31 Assets Cash Accounts payable Inventory Total current assets Equipment Accumulated depreciation Total assets Liabilities and Equity Liabilities Accounts payable Salaries payable I I Income taxes payable Total current liabilities Bank loan payable Total liabilities Stockholders' Equity Common tool Total current assets Equipment Accumulated depreciation Total assets Liabilities and Equity Liabilities Accounts payable Salaries payable Income taxes payable Total current liabilities Bank loan payable Total liabilities Stockholders' Equity Common stock Retained earnings Total Stockholders' equity Total Liabilities and Equity