Use the following information to prepare the July cash budget for Anker Co. It should show expected cash receipts and cash disbursements for the month and the cash balance expected on July 31.
a. Beginning cash balance on July 1: $63,000.
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), $1,700,000; June (actual), $1,200,000; and July (budgeted), $1,400,000.
Payments on merchandise purchases: 90% in the month of purchase and 10% in the month following purchase. Purchases amounts are: June (actual), $620,000; and July (budgeted), $790,000.
d. Budgeted cash disbursements for salaries in July: $220,000.
e. Budgeted depreciation expense for July: $11,000.
f. Other cash expenses budgeted for July: $230,000.
g. Accrued income taxes due in July: $50,000.
h. Bank loan interest due in July: $7,000.
*****I NEED THE FOLLOWINGS****
FOR CASH BUDGET FOR THE MONTH ENDED July 31 AS FOLLOWS:
Beginning Cash Balance Sheet and Cash Receipt from sales ON DEBIT SIDE, then Total cash available on the Credit side.
CASH DISBURSEMENTS AS FOLLOWS:
ON DEBIT SIDE: Salaries, accrued taxes, payment for merchandise, other expenses, interest on bank loan.
ON CREDIT SIDE: Total cash disbursements, ending cash balance.
******PLEASE NOTE********* I NEED THE EXPLANATION OF HOW TO OBTAIN THE ANSWERS. THANKS.© BrainMass Inc. brainmass.com June 4, 2020, 12:02 am ad1c9bdddf
The solution prepares cash budget for Anker Co. in Excel.