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: $75,000. b. Budgeted cash receipts from sales: 10% is collected in the month of sale, 50% in the next month, and 40% in the second month after sale. Sales amounts are May (actual), $1,800,000; June (actual), $1,300,000; and July (budgeted), $1,480,000. c. Budgeted cash payments on merchandise purchases: 65% in the month of purchase and 35% in the month following purchase. Purchase amounts are June (actual), $580,000; and July (budgeted), $680,000. d. Budgeted cash payments for salaries in July: $180,000. e. Budgeted cash payments for sales commissions for July: $190,000. f. Budgeted cash payment for income taxes in July: $50,000. g. Budgeted cash payment for loan interest in July: $7,000. Calculation: Cash Budget Calculate the budgeted cash receipts and cash payments. Calculation of Cash Receipts from Sales Total Sales May Credit sales from: May $ 1,800,000 -Collected in- June July July 31 Accounts Receivable $ 900,000 $ 720,000 $ 180,000 June 1,300,000 July 1,480,000 Totals. $ 4,580,000 $ 0 $ 900,000 $ 720,000 $ 180,000 Calculation of Cash Payments for Merchandise Paid in- Total Purchases June July Purchases from: June $ 580,000 July 680,000 Totals $ 1,260,000 $ 0 $ 0 Calculation $ Cash Budget > July 31 Accounts payable Calculation Cash Budget Prepare the July cash budget for Acco Company. ACCO COMPANY Total cash available Less: Cash payments for: Total cash payments Cash Budget July 0 < Calculation Cash Budget >