Help Save & Ex Chee Use the following information to prepare the July cash budge

Question

Help Save & Ex Chee 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: $63,000. b 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 uncollectible accounts are negligible and can be ignored) Sales amounts are: May (actual) $1790000; June (actual), $140000; and July (budgeted), $1,400,00o. Payments on merchandise purchases: 70% in the month of purchase and 30% in the are: June (actual), $480,000; and July (budgeted), $750,000. month following purchase. Purchases amounts d. Budgeted cash payments for salaries in July: $310,000. e. Budgeted depreciation expense for July: $10,000 f. Other cash expenses budgeted for July: $300,000. income taxes due in July: $70,000. h. Benk loan interest paid in July: $8,500 Complete this question by entering your answers in the tabs below Cash Budget Calculate the budgeted cash receipts and cash payments v 31

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Calculation of Cash Receipts from sale: Collected in Jul-31 Total Sales May June July Accounts Receivable Credit Sales from May 1790000 358000 895000 537000 0 June 1400000 280000 700000 420000 July 1400000 280000 1120000 Total 4590000 358000 1175000 1517000 1540000 Calculation of Cash payment for merchandise: Paid in Jul-31 Total Pur June July Accounts Payable Purchase from June 480000 336000 144000 0 July 750000 525000 225000 Total 1230000 336000 669000 225000 Cash Budget for July Beginning Cash Balance 63000 add: Cash Receipt from Sale 1517000 Total Cash Available 1580000 Cash Payment for: Merchandise purchase 669000 Salaries 310000 Depreciation Non-Cash 0 Other Cash Expense 300000 Income Tax 70000 Bank Interest 8500 Total Cash Payment 1357500 Ending Cash Balance Cash Available-Cash Payment 222500

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