Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the following information to prepare the July cash budget for Acco Company. Ignore the Loan actlivity section of the budget a. Beginning cash baiance

image text in transcribed
image text in transcribed
Use the following information to prepare the July cash budget for Acco Company. Ignore the "Loan actlivity" section of the budget a. Beginning cash baiance on July 1$74,000 b. Budgeted cash receipts from sales: 15% is collected in the month of sale, 50% in the next month, and 35% in the second month after sale. Sales amounts are May (actuai), $1,740,000; June (actuai), $1,260,000; and July (budgeted), $1,490,000. c. Budgeted cash payments on merchandise purchases: 55% in the month of purchase and 45% in the month following purchase: Purchase amounts are June (actual), $580,000; and July (budgeted), $690,000 d. Budgeted cash payments for salaries in July: $110,000 e. Budgeted cash payments for sales commissions for July. $140,000. f. Eudgeted cash payment for income taxes in July: $100,000. g. Budgeted cash payment for loan interest in July: $7,000. Complete this question by entering your answers in the tabs below. Calculate the budgeted cash receipts and cash payments. Use the following information to prepare the July cash budget for Acco Company. Ignore the "Loan activity' section of the budget a. Beginning cash balance on July 1:$74,000. b. Budgeted cash receipts from sales: 15% is collected in the month of sale, 50% in the next month, and 35% in the second month after sale. Sales amounts are May (actual), \$1,740,000; June (actual), \$1,260,000; and July (budgeted), $1,490,000. c. Budgeted cash payments on merchandise purchases: 55% in the month of purchase and 45% in the month following purchase: Purchase amounts are June (actual), $580,000; and July (budgeted), $690,000 d. Budgeted cash payments for salaries in July: $110,000 e. Budgeted cash payments for sales commissions for July: $140,000. f. Budgeted cash payment for income taxes in July: $100,000. g. Budgeted cash payment for loan interest in July: $7,000. Complete this question by entering your answers in the tabs below. Prepare the July cash budget for Acco Company

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investments Analysis And Management

Authors: Charles P. Jones, Gerald R. Jensen

14th Edition

1119578078, 978-1119578079

More Books

Students also viewed these Accounting questions