Use the following information to prepare the July cash budgetfor Anker Co. It should show expected cash receipts and cashdisbursements for the month and the cash balance expected on July31.
a.?Beginning cash balance on July 1: $63,000.
b.?Cash receipts from sales: 30% is collected in the month ofsale, 50% in the next month, and 20% in the second month after sale(uncollectible accounts are negligible and can be ignored). Salesamounts are: May (actual), $1,700,000; June (actual), $1,200,000;and July (budgeted), $1,400,000.
c.?Payments on merchandise purchases: 90% in the month ofpurchase and 10% in the month following purchase. Purchases amountsare: June (actual), $620,000; and July (budgeted), $790,000.
d.?Budgeted cash disbursements for salaries in July:$220,000.
e.?Budgeted depreciation expense for July: $11,000.
f.?Other cash expenses budgeted for July: $230,000.
g.?Accrued income taxes due in July: $50,000.
h.?Bank loan interest due in July: $7,000
Required:
Prepare cash budget for month of July?
