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.

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 $ $ $ $ $ 1,032,000 720,000 840,000 2,592,000 278,640 of 0 278,640 516,000 194,400 0 710,400 237,360 360,000 226,800 824,160 0 165,600 613,200 778,800 July Totals $ $ $ $ $ Calculation of Cash Payments for Merchandise -------------Paid in---------------- July 31 Accounts Pay. Total Purchases June July Purchases from: June $ $ $ July 258,000 600,000 858,000 139,320 01 139,320 118,680 324,000 442,680 276,000 276,000 Totals $ $ $ $