Use the following information to prepare the July cash budget for Acco Co. It should show expected cash receipts and cash disbursements for the month and the cash balance expected on July 31.

a.	Beginning cash balance on July 1: $65,000.
b.	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 (uncollectible accounts are negligible and can be ignored). Sales amounts are: May (actual), $1,950,000; June (actual), $1,230,000; and July (budgeted), $1,430,000.
c.	Payments on merchandise purchases: 65% in the month of purchase and 35% in the month following purchase. Purchases amounts are: June (actual), $500,000; and July (budgeted), $730,000.
d.	Budgeted cash disbursements for salaries in July: $120,000.
e.	Budgeted depreciation expense for July: $12,000.
f.	Other cash expenses budgeted for July: $220,000.
g.	Accrued income taxes due in July: $90,000.
h.	Bank loan interest due in July: $8,000.

Calculation of cash receipts from sales:

	Total Sales	May	June	July	Accounts Rec.
Credit Sales From:
May	1,950,000
June	1,230,000
July	1,430,000
Total	4,610,000

Calculation of cash payments for merchandise:

	Total Purchases	June	July	Accounts Pay.
Purchases from:
June	500,000
July	730,000
Totals	1,230,000

ACCO Company Cash Budget For the month ended July 31

Total Cash Available
Cash Disbursements:
Total cash disbursements