80.2K

Verified Solution

Link Copied!

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: $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 payments 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 paid in July: $6,600. Complete this question by entering your answers in the tabs below. Calculation Cash Budget Calculate the budgeted cash receipts and cash payments. Calculation of Cash Receipts from Sales Collected in Total Sales May June July 31 July Accounts Rec Credit Saks from $ 1,720,000 s 344,000 s 344,000 $ 344,000 $ 008,000 Complete this question by entering your answers in the tabs below. Calculation Cash Budget Calculate the budgeted cash receipts and cash payments. Calculation of Cash Receipts from Sales ..........Collected in---------- Total Sales June July July 31 Accounts Rec. ces Credit sales from May June $ 344,000 344000 S $ 1,720.000 1,200,000 1,400,000 4,320,000 344,000 600,000 420,000 1,364,000 688,000 600,000 980,000 2,268,000 July Totals $ $ 344.000 344,000 $ $ Calculation of Cash Payments for July 31 Total Purchases June Accounts Pay Purchases from July 700,000 750,000 1,450,000 tou $ $ 0 Cash Budget >

Answer & Explanation Solved by verified expert

See Answer