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: $50,000. b. 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), $1,720,000; June (actual). $1,200,000 and July (budgeted) $1,400,000 c. Payments on merchandise purchases: 60% in the month of purchase and 40% in the month following purchase. Purchases amounts are: June (actual). $700,000; and July (budgeted), $750,000. d. Budgeted cash payments for salaries in July: $275,000. e. Budgeted depreciation expense for July: $36,000. f. Other cash expenses budgeted for July: $200,000. 9. Accrued income taxes due in July: $80,000. h. Bank loan interest paid in July: $6,600. Calculation Cash Budget Calculate the budgeted cash receipts and cash payments. Calculation of Cash Receipts from Sales Collected in July 31 Total Sales May June July Accounts Rec. Credit sales from: May $ June 1,720.000 1,200,000 1,400,000 4,320,000 $ July Totals 0 O $ 0 $ 0 Calculation of Cash Payments for Merchandise -Paid in Total Purchases June July July 31 Accounts Pay. Purchases from: 700.000 June July Totals 750.000 1,450 000 $ $ 0 $ 0 $ 0 Calculation Cash Budget Prepare the July cash budget for Acco Co. ACCO CO. Cash Budget For the Month Ended July 31 Total cash available Cash payments for Total cash payments $ 0