Use the following information to prepare the July cash budget for Acco Co. It should...
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Accounting
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.
Check Ending cash balance, $122,400
NB: There are alot of incorrect answers here on chegg with regards to the answers to this question. Kindly avoid doing copy and paste please. A detailed and explanatory answer and i'll award you full points. Thanks
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