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: $63,000. 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), $1,850,000; June (actual), $1,450,000; and July (budgeted) $1,390,000 c. Budgeted cash payments on merchandise purchases: 85% in the month of purchase and 15% in the month following purchase. Purchase amounts are June (actual), $510,000; and July (budgeted) $630,000. d. Budgeted cash payments for salaries in July: $200,000 e. Budgeted cash payments for sales commissions for July: $260,000, f. Budgeted cash payment for income taxes in July: $90,000. 9. Budgeted cash payment for loan interest in July: $10,000. Calculation Cash Budget Calculate the budgeted cash receipts and cash payments. Calculation of Cash Receipts from Sales ---Collected in ................... Total Sales May June July July 31 Accounts Receivable Credit sales from: May June $ 1,850,000 1,450,000 1,390,000 4,690,000 $ July Totals $ 0 $ 0 $ 0 0 $ Calculation of Cash Payments for Merchandise -Paid in------ Total Purchases July 31 Accounts payable June July Purchases from: June $ July 510,000 630,000 1,140,000 $ 0 0 $ Totals 0 Calculation Cash Budget > Calculation Cash Budget Prepare the July cash budget for Acco Company ACCO COMPANY Cash Budget July Beginning cash balance Add: Cash receipts from sales Total cash available Less: Cash payments for: Income taxes Interest on loan Merchandise Salaries Sales commissions Total cash payments Preliminary cash balance $ 0