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1. Use the following information to prepare the July cash budget for Acco Co. It should show expected cash receipts and cash payments for the month and the cash balance expected on July 31. a. Beginning cash balance on July 1: $67,000. b. Cash receipts from sales: 25% is collected in the month of sale, 50% in the next month, and 25% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are May (actual), $1,800,000; June (actual), $1,490,000; and July (budgeted) $1,540,000. c. Payments on merchandise purchases: 55% in the month of purchase and 45% in the month following purchase. Purchases amounts are: June (actual), $490,000; and July (budgeted), $440,000. d. Budgeted cash payments for salaries in July: $190,000. e. Budgeted depreciation expense for July: $14,000. f. Other cash expenses budgeted for July: $260,000. g. Accrued income taxes due in July: $80,000. h. Bank loan interest paid in July: $6,000.
Complete this question by entering your answers in the tabs below. Calculation Cash Budget Calculate the budgeted cash receipts and cash payments. Calculation of Cash Receipts from Sales Collected in Total Sales June July 31 Accounts Rec. May July Credit sales from May June $ 1,800,000 1,490,000 July Totals 1,540,000 4,830,000 $ $ $ 0 $ 0 $ 0 $ 0 Calculation of Cash Payments for Merchandise --Paid in- July 31 Accounts Pay. Total Purchases June July Purchases from: June $ $ July Totals 490,000 440,000 930,000 $ $ $ 0 $ 0 $ 0
Complete this question by entering your answers in the tabs below. Calculation Cash Budget Prepare the July cash budget for Acco Co. ACCO CO. Cash Budget For the Month Ended July 31 Total cash available Cash payments for: Total cash payments $ 0.

2. Statement of cash flows; direct method [LO21-3, 21-8] The comparative balance sheets for 2021 and 2020 and the statement of Income for 2021 are given below for National Intercable Company. Additional Information from NIC's accounting records is provided also. NATIONAL INTERCABLE COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) 2021 2020 $ $ Assets Cash Accounts receivable Less: Allowance for uncollectible accounts Prepaid insurance Inventory Long-term investment Land Buildings and equipment Less: Accumulated depreciation Trademark 112 314 (10) 7 293 54 200 334 (101) 38 105 3es (8) 11 285 85 2ee 300 (95) 40 $1,241 $1,241 $1,228 $ $ 58 7 19 Liabilities Accounts payable Salaries payable Deferred tax liability Lease liability Bonds payable Less: Discount on bonds Shareholders' Equity Common stock Paid-in capital-excess of par Preferred stock Retained earnings 40 4 24 77 145 (26) 295 (30) 300 10e 320 12e 50 487 479 $1,228 $1,241 $ 430 15 7 $ 452 NATIONAL INTERCABLE COMPANY Income Statement For Year Ended December 31, 2021 ($ in millions) Revenues Sales revenue Investment revenue Gain on sale of investments Expenses Cost of goods sold Salaries expense Depreciation expense Amortization expense Bad debt expense Insurance expense Interest expense Loss on sale of building Income before tax Income tax expense Net income 198 65 28 2 6 28 40 38 389 63 30 $ 33
Additional information from the accounting records: a. Investment revenue includes National Intercable Company's $7 million share of the net income of Central Fiber Optics Corporation. an equity method investee. b. A long-term investment in bonds, originally purchased for $38 million, was sold for $45 million. C.Pretax accounting income exceeded taxable income, causing the deferred income tax liability to increase by $5 million. d. A building that originally cost $56 million, and which was one-fourth depreciated, was destroyed by fire. Some undamaged sections were sold for $4 million. e. The right to use a building was acquired with a seven-year lease agreement present value of lease payments. $90 million. Annual lease payments of $13 million are paid at Jan. 1 of each year starting in 2021. f. $150 million of bonds were retired at maturity. g. $20 million par value of common stock was sold for $40 million, and $50 million of preferred stock was sold at par. h. Shareholders were paid cash dividends of $25 million. Required: 2. Prepare the statement of cash flows. Present cash flows from operating activities by the direct method. (Enter your answers in millons (l.e., 10,000,000 should be entered as 10.). Amounts to be deducted should be Indicated with a minus sign.) NATIONAL INTERCABLE COMPANY Statement of Cash Flows For the year ended December 31, 2021 ($ in millions) Cash flows from operating activities: Cash inflows Cash outflows: Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities Net increase (decrease) in cash Cash balance, January 1 Cash balance, December 31.