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: $64,000. b. Budgeted cash receipts from sales: 15% is collected in the month of sale, 50% in the next month, and 35% in the second month after sale. Sales amounts are May (actual), $1,940,000; June (actual), $1,310,000; and July (budgeted), $1,410,000. c. Budgeted cash payments on merchandise purchases: 90% in the month of purchase and 10% in the month following purchase. Purchase amounts are June (actual), $530,000; and July (budgeted), $640,000. d. Budgeted cash payments for salaries in July: $380,000. e. Budgeted cash payments for sales commissions for July: $290,000. f. Budgeted cash payment for income taxes in July: $80,000. g. Budgeted cash payment for loan interest in July: $9,000.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![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: $64,000.
b. Budgeted cash receipts from sales: 15% is collected in the month of sale, 50% in the next month, and 35% in the second month after
sale. Sales amounts are May (actual), $1,940,000; June (actual), $1,310,000; and July (budgeted), $1,410,000.
c. Budgeted cash payments on merchandise purchases: 90% in the month of purchase and 10% in the month following purchase.
Purchase amounts are June (actual), $530,000; and July (budgeted), $640,000.
d. Budgeted cash payments for salaries in July: $380,000.
e. Budgeted cash payments for sales commissions for July: $290,000.
f. Budgeted cash payment for income taxes in July: $80,000.
g. Budgeted cash payment for loan interest in July: $9,000.
Complete this question by entering your answers in the tabs below.
Calculation Cash Budget
Prepare the July cash budget for Acco Company.
Total cash available
Less: Cash payments for:
Total cash payments
ACCO COMPANY
Cash Budget
July
< Calculation
$
0
Cash Budget >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0a3d73ed-e9a8-4c2d-8d63-1e1f68c02041%2Fb4825156-0b36-48b7-8712-bbc766169209%2F9qs6yyp_processed.png&w=3840&q=75)
![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: $64,000.
b. Budgeted cash receipts from sales: 15% is collected in the month of sale, 50% in the next month, and 35% in the second month after
sale. Sales amounts are May (actual), $1,940,000; June (actual), $1,310,000; and July (budgeted), $1,410,000.
c. Budgeted cash payments on merchandise purchases: 90% in the month of purchase and 10% in the month following purchase.
Purchase amounts are June (actual), $530,000; and July (budgeted), $640,000.
d. Budgeted cash payments for salaries in July: $380,000.
e. Budgeted cash payments for sales commissions for July: $290,000.
f. Budgeted cash payment for income taxes in July: $80,000.
g. Budgeted cash payment for loan interest in July: $9,000.
Complete this question by entering your answers in the tabs below.
Calculation
Calculate the budgeted cash receipts and cash payments.
Cash Budget
Credit sales from:
May
June
July
Totals
Purchases from:
June
July
Totals
$
$
$
Calculation of Cash Receipts from Sales
$
Total Sales
1,940,000
1,310,000
1,410,000
4,660,000 $
Total Purchases
530,000
640,000
1,170,000
$
May
<
Calculation of Cash Payments for Merchandise
-----Paid in--‒‒‒‒‒‒‒‒‒‒‒‒‒
-----Collected in➖➖➖➖➖➖➖➖➖➖➖➖➖➖
June
0 $
▶
0 $
June
Calculation
0 $
July
0
July
July 31
Accounts
Receivable
0 $
Cash Budget >
July 31
Accounts
payable
$
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0a3d73ed-e9a8-4c2d-8d63-1e1f68c02041%2Fb4825156-0b36-48b7-8712-bbc766169209%2Fkc45kxn_processed.png&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
![Excel Applications for Accounting Principles](https://www.bartleby.com/isbn_cover_images/9781111581565/9781111581565_smallCoverImage.gif)
![Financial And Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337902663/9781337902663_smallCoverImage.jpg)