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: $67,000. 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), $1,750,000; June (actual), $1,220,000; and July (budgeted), $1,560,000. C. Payments on merchandise purchases: 70% in the month of purchase and 30% in the month following purchase. Purchases amounts are: June (actual), $510,000; and July (budgeted), $720,000. d. Budgeted cash payments for salaries in July: $380,000. e. Budgeted depreciation expense for July: $14,000. f. Other cash expenses budgeted for July: $220,000. g. Accrued income taxes due in July: $50,000. h. Bank loan interest paid in July: $8,500. 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 $ 1,750,000 June 1,220,000 July 1,560,000 Totals $ 4,530,000 $ 0 $ 0 $ 0 $ 0 Calculation of Cash Payments for Merchandise -Paid in---------------- July 31 Total Purchases June July Accounts Pay. Purchases from: June $ 510,000 July 720,000 Totals $ 1,230,000 $ 0 $ 0 $ 0 Calculation Cash Budget Prepare the July cash budget for Acco Co. ACCO CO. Cash Budget For the Month Ended July 31 $ Beginning cash balance 67,000 Cash receipts from sales Total cash available Cash payments for: Accrued taxes 50,000 Interest on bank loan 8,500 Merchandise Other expenses 220,000 Salaries 380,000 Total cash payments 658,500 (658,500) Ending cash balance $