Use the following information to prepare the July cash budget for Acco Co. It should show expected cash receipts and cash disbursements for the month and the cash balance expected on July 31 a. Beginning cash balance on July 1: $73,000. b. Cash receipts from sales: 20% is collected in the month of sale, 50% in the next month, and 30% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are: May (actual), $1,970,000; June (actual), $1,470,000; and July (budgeted), $1,560,000. c. Payments on merchandise purchases: 75% in the month of purchase and 25% in the month following purchase. Purchases amounts are: June (actual), $460,000; and July (budgeted), $550,000. d. Budgeted cash disbursements for salaries in July: $110,000. e. Budgeted depreciation expense for July: $10,000 f. Other cash expenses budgeted for July: $210,000. g. Accrued income taxes due in July: $50,000. h. Bank loan interest paid in July: $9,500. Calculation of cash receipts from sales Collected in July 31 Total Sales May June July Accounts Rec Credit sales from: May 1,970,000 1,470,000 June 1,560,000 S 0 0 0 5,000,000 Totals Calculation of cash payments for merchandise Paid in July 31 Total Purchases July Accounts Pay June Purchases from 460,000 June July 550,000 S Totals 1,010,000