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 Co. It should show expected cash receipts and cash payments for the month

image text in transcribed
image text in transcribed
image text in transcribed
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 X Answer is not complete. Complete this question by entering your answers in the tabs below. Calculation Cash Budget Calculate the budgeted cash receipts and cash payments. Calculation of Cash Receipts from Sales Collected in Total Sales May June July 31 Accounts July Rec. Credit sales from May $ June 1,720,000 1,200,000 1,400,000 4,320 000 July Totals Calculation of Cash Payments for Merchandise Pald in July 31 Accounts Total Purchases June July Pay. Purchases from: June July 700,000 750,000 1,450,000 $ Totals $ 0 $ 0 Cash Budget > Answer is not complete. Complete this question by entering your answers in the tabs below. Calculation Cash Budget Prepare the July cash budget for Acco Co. $ 305,000 ACCO CO. Cash Budget For the Month Ended July 31 Beginning cash balance ls 50,000 Cash receipts from sales 255,000 Total cash available Cash payments for Merchandise 93,800 Beginning cash balance 39.000 Other expenses 60.000 Accrued taxes 10,000 Interest on bank loan 1,000 Total cash payments Ending cash balance 203.800 101.200

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

Audit Risk Assessment Made Easy Seeing What Others Miss

Authors: Charles Hall

1st Edition

0578961679, 978-0578961675

More Books

Students also viewed these Accounting questions