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: $74,000. b. Budgeted cash receipts from sales: 20% is collected in the month of sale, 50% in the next month, and 30% in the second month after sale. Sales amounts are May (actual). $1,730,000: June (actual). $1.290,000; and July (budgeted). $1,590,000 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), $400,000; and July (budgeted), $710,000, d. Budgeted cash payments for salaries in July: $320,000. e. Budgeted cash payments for sales commissions for July: $260,000. f. Budgeted cash payment for income taxes in July: $60,000, g. Budgeted cash payment for loan interest in July: $8,500. 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 1,730,000 1,290,000 1,590,000 4,610,000 $ July Totals $ 0 $ 0 $ 0 $ Calculation of Cash Payments for Merchandise Paid in- Total Purchases June July July 31 Accounts payable Purchases from: June $ July 400,000 710,000 1,110,000 $ Totals $ 0 $ 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: Merchandise Salaries Sales commissions Income taxes Interest on loan Total cash payments Preliminary cash balance $ 0