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: $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 disbursements for salaries in July: $275,000.
e. Budgeted depreciation expense for July: $36,000.
f. Other cash expenses budgeted for July: $200,000.
g. Accrued income taxes due in July: $80,000.
h. Bank loan interest due in July: $6,600

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Calculation of cash receipts from sales July 31 Accounts Rec. -Collected in Total Salets May June July Credit sales from 600008 2000 May June July Totals ,720,000 1,200,000 400,000 320,000 $ 516,000$ 516,000 280,000 $280.000 Calculation of cash payments for merchandise July 31 Accounts Pay Paid in Total Purchases J June Purchases from June July Totals 700,000 50,000 1,450,000 S ACCO COMPANY Cash Budget For the Month Ended July 31 Beginning cash balance Cash receipts from sales Total cash avalable Cash dsbursements: Payments for merchandse Other expenses Interest on bank loan Accrued taxes Salarles Total cash disbursements