Following information relates to Acco Co.

1. Beginning cash balance on July 1: $30,000.
2. 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), $1,032,000; June (actual), $720,000; and July (budgeted), $840,000.
3. Payments on merchandise purchases: 48% in the month of purchase and 52% 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:

1. Cost of goods sold is 35% of sales.
2. Inventory at the end of June is $48,000 and at the end of July is $354,000.
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 $113,484, and the income tax rate is 35%.
7. The only other balance sheet accounts are: Common Stock, with a balance of $402,160 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 sheet for July 31.

Calculation of Cash Receipts From Sales --.-.-...-.-.Collected in-... Total Sales May June July 31 Accounts Rec. July Credit sales from: May June $ 1,032,000 720,000 840,000 2,592,000 July Totals $ $ $ $ $ 0 Calculation of Cash Payments for Merchandise ---------------Paid in---------------- July 31 Accounts Pay. Total Purchases June July Purchases from: June July Totals 258,000 600,000 858,000 $ $ 0 $ 0 $ 0 ACCO CO. Budgeted Income Statement For Month Ended July 31 Operating expenses: Total operating expenses Duagered Balance Sheet As of July 31 Assets Liabilities and Equity Liabilities Stockholders' Equity