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.

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.

 


Explanation:

Note: Depreciation expense is excluded since it is a non-cash expense.

 

Supporting calculations

 

Cash receipts in July from sales

From May sales ($1,750,000 × 15%)	$	262,500
From June sales ($1,480,000 × 50%)		740,000
From July sales ($1,540,000 × 35%)		539,000
Total	$	1,541,500

  

Cash disbursements in July for merchandise

For June purchases ($570,000 × 10%)	$	57,000
For July purchases ($450,000 × 90%)		405,000
Total	$	462,000