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Prepare Cash Budget from Budgeted Transactions

McCall Company anticipates a cash balance of $110,000 on July 1, 2019. The following budgeted transactions for July 2019 present data related to anticipated cash receipts and cash disbursements:

1. For July, budgeted cash sales are $82,000 and budgeted credit sales are $610,000. (Credit sales for June were $550,000.) In the month of sale, 40% of credit sales are collected, with the balance collected in the month following sale.

2. Budgeted merchandise purchases for July are $350,000. (Merchandise purchases in June were $290,000.) In the month of purchase, 70% of merchandise purchases are paid for, and the balance is paid for in the following month.

3. Budgeted cash disbursements for salaries and operating expenses for July total $210,000.

4. During July, $30,000 of principal repayment and $5,000 of interest payment are due to the bank.

5. A $25,000 income tax deposit is due to the federal government during July.

6. A new delivery truck will be purchased during July for $9,000 cash and a $10,000 note payable. Depreciation for July will be $675.

Prepare a cash budget for McCall Company for the month of July 2019.

McCall Company Cash Budget For the Month Ended July 31, 2019
Beginning cash balance
Cash receipts:
Cash sales
Collections on credit sales
Cash available
Cash disbursements:
Payments for merchandise
Salaries and operating expense payments
Principal and interest payment
Income tax deposit
Payment on truck
Total cash disbursements
Ending cash balance

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