Use the following information to prepare the July cash budget for Acco Company. Ignore the "Loan activity" section of the budget a. Beginning cash balance on July 1: $72,000. b. Budgeted cash receipts from sales: 25% is collected in the month of sale, 50% In the next month, and 25% in the second month after sale. Sales amounts are May (actual), $1,830,000; June (actual), $1,490,000; and July (budgeted), $1,600,000. c. Budgeted cash payments on merchandise purchases: 80% in the month of purchase and 20% in the month following purchase. Purchase amounts are June (actual), $560,000; and July (budgeted), $730,000. d. Budgeted cash payments for salaries in July: $180,000. e. Budgeted cash payments for sales commissions for July: $110,000. 1. Budgeted cash payment for Income taxes In July: $100,000. g. Budgeted cash payment for loan Interest in July: $5,500.

Use the following information to prepare the July cash budget for Acco Company. Ignore the "Loan activity" section of the budget a. Beginning cash balance on July 1: $72,000. b. Budgeted cash receipts from sales: 25% is collected in the month of sale, 50% In the next month, and 25% in the second month after sale. Sales amounts are May (actual), $1,830,000; June (actual), $1,490,000; and July (budgeted), $1,600,000. c. Budgeted cash payments on merchandise purchases: 80% in the month of purchase and 20% in the month following purchase. Purchase amounts are June (actual), $560,000; and July (budgeted), $730,000. d. Budgeted cash payments for salaries in July: $180,000. e. Budgeted cash payments for sales commissions for July: $110,000. 1. Budgeted cash payment for Income taxes In July: $100,000. g. Budgeted cash payment for loan Interest in July: $5,500.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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