Question

Following information relates to Acco Co. a. Beginning cash balance on July 1: $50,000. b. Cash receipts from sales: 30% is collected in the month of sale, 50% in the next month, and 20% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are May (actual), $1,720,000; June (actual). $1,200,000; and July (budgeted), $1,400,000. c. Payments on merchandise purchases: 60% in the month of purchase and 40% in the month following purchase. Purchases amounts are: June (actual), $700,000; and July (budgeted), $750,000. d. Budgeted cash payments for salaries in July: $275,000. e. Budgeted depreciation expense for July: $36,000. f. Other cash expenses budgeted for July: $200,000. g. Accrued income taxes due in July: $80,000. h. Bank loan interest paid in July: $6,600. Additional Information: a. Cost of goods sold is 55% of sales. b. Inventory at the end of June is $80,000 and at the end of July is $60,000. c. Salaries payable on June 30 are $50,000 and are expected to be $60,000 on July 31. d. The equipment account balance is $1,600,000 on July 31. On June 30, the accumulated depreciation on equipment is $280,000. e. The $6,600 cash payment of interest represents the 1% monthly expense on a bank loan of $660,000. f. Income taxes payable on July 31 are $30,720, and the income tax rate is 30%. g. The only other balance sheet accounts are Common Stock, with a balance of $600,000 on June 30; and Retained Earnings, with a balance of $964,000 on June 30. Prepare a budgeted income statement for the month of July and a budgeted balance sheet for July 31. Answer is not complete. Complete this question by entering your answers in the tabs below.

Can someone help me figure out what is the cash amount for the balance sheet?

Answer 1

cash receipts schedule:

	July
receipts from May sale	344,000	[1,720,000*20%]
June sale	600,000	[1,200,000*50%]
July sale	420,000	[1,400,000*30%]
Total cash receipts in July	1,364,000	[344000+600000+420000]

cash payment schedule

	July
cash payment of June 40%	280,000	[700,000*40%]
July 60%	450,000	[750,000*60%]
cash payment	$730,000	[280,000+450,000]

cash budget

	July
Beginning cash balance	$50,000
Add: cash receipts	$1,364,000
Total cash available	$1,414,000	[50000+1364000]
disbursement
cash payment for purchase	$730,000
cash expense	$200,000
cash payment for salaries	$275,000
bank loan interest paid	$6,600
income tax due paid in July	$80,000
Total disbursement	$1,291,600	[730000+200000+275000+6600+80000]
ending cash balance	$122,400	[1,414,000-1,291,600]

cash balance as on July 31 is $122,400