Following information relates to Acco Co. Beginning cash balance on July 1: $30,000. Cash receipts from sales: 30% is collected in the month of sale, 50% in the next month, and 20% 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. Payments on merchandise purchases: 60% in the month of purchase and 40% in the month following purchase. Purchases amounts are: June (actual), $258,000; and July (budgeted), $600,000. Budgeted cash payments for salaries in July: $126,600. Budgeted depreciation expense for July: $7,200. Other cash expenses budgeted for July: $90,000. Accrued income taxes due in July: $80,000. Bank loan interest paid in July: $3,960.

Additional Information:

Cost of goods sold is 44% of sales. Inventory at the end of June is $48,000 and at the end of July is $278,400. Salaries payable on June 30 are $30,000 and are expected to be $24,000 on July 31. The equipment account balance is $960,000 on July 31. On June 30, the accumulated depreciation on equipment is $168,000. The $3,960 cash payment of interest represents the 1% monthly expense on a bank loan of $396,000. Income taxes payable on July 31 are $87,024, and the income tax rate is 35%. The only other balance sheet accounts are Common Stock, with a balance of $328,000 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.