Use the following information to prepare the July cash budget for Acco Co. It should show expected cash receipts and cash payments for the month and the cash balance expected on July 31 a. Beginning cash balance on July 1 $68,000 b. Cash receipts from sales 35% is collected in the month of sale, 50% in the next month, and 15% in the second month after sale (uncollectible accounts are negligible and can be ignored) Sales amounts are May (actual), $1860,000, June (actual), $1.490,000; and July (budgeted), $1.460,000. c. Payments on merchandise purchases 50% in the month of purchase and 50% in the month following purchase Purchases amounts are June (actual), $590,000, and July (budgeted), $500,000 d. Budgeted cash payments for salaries in July $150,000 e. Budgeted depreciation expense for July $10.000. f. Other cash expenses budgeted for July $120,000 g. Accrued income taxes due in July $80.000 h. Bank loan interest paid in July $7,500 Calculation of Cash Receipts from Sales Collected in July 31 Accounts Rec. Total Sales May June July Credit sales from: May $ 651,000 June 1,860,000 $ 1,490,000 1,460,000 4,810,000 $ July Totals $ 651,000 $ 0 $ 0 $ 0 Calculation of Cash Payments for Merchandise -Paid in July 31 Total Purchases June July Accounts Pay. Purchases from June $ July Totals 590,000 500 000 1,090,000 $ $ $ 0 $ 0 $ 0 ACCO CO. Cash Budget For the Month Ended July 31 Total cash available Cash payments for Total cash payments $