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. |
| 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 |
| |
|
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|
