augeted salv Budgeted sales Budgeted cash payments for Direct materials Direct labor Overhead July $63,400 12,480 10,400 18,720 August $80,600 9,900 8,250 14.850 September $48.600 10,140 8,450 15,210 Sales to customers are 20% cash and 80% on credit. Sales in June were $58,750. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $12,900 in cash and $2,600 in loans payable. A minimum cash balance of $12,600 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $12,600. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. Any preliminary cash balance above $12,600 is used to repay loans at month-end. Expenses are paid in the month incurred and consist of sales commissions (10% of sales), office salaries ($4,600 per month), and rent ($7,100 per month). 1. Prepare a schedule of cash receipts for the months of July, August, and September. 2. Prepare a cash budget for the months of July, August, and September. Round interest payments to the dollar.

augeted salv Budgeted sales Budgeted cash payments for Direct materials Direct labor Overhead July $63,400 12,480 10,400 18,720 August $80,600 9,900 8,250 14.850 September $48.600 10,140 8,450 15,210 Sales to customers are 20% cash and 80% on credit. Sales in June were $58,750. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $12,900 in cash and $2,600 in loans payable. A minimum cash balance of $12,600 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $12,600. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. Any preliminary cash balance above $12,600 is used to repay loans at month-end. Expenses are paid in the month incurred and consist of sales commissions (10% of sales), office salaries ($4,600 per month), and rent ($7,100 per month). 1. Prepare a schedule of cash receipts for the months of July, August, and September. 2. Prepare a cash budget for the months of July, August, and September. Round interest payments to the dollar.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Budgeted sales Budgeted cash payments for Direct materials Direct labor Overhead July August September $ 63,500 $ 79,500 $ 48,500 16,260 13,540 13,860 4,140 20,300 3,460 16,900 3,540 17,300 Sales to customers are 25% cash and 75% on credit. Sales in June were $57,000. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $17,000 in cash and $5,100 in loans payable. A minimum cash balance of $17,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $17,000. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. Any preliminary cash balance above $17,000 is used to repay loans at month-end. Expenses are paid in the month incurred and consist of sales commissions (10% of sales), office salaries ($4,100 per month), and rent ($6,600 per month). 2. Prepare a cash budget for the months of July, August, and September. (Negative balances and…
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