Built-Tight is preparing its master budget. Budgeted sales and cash payments follow: Budgeted sales July $ 58,500 August $ 74,500 Budgeted cash payments for Direct materials Direct labor Overhead 13,340 3,260 16,700 September $ 53,500 16,060 3,940 20,100 13,660 3,340 17,100 Sales to customers are 25% cash and 75% on credit. Sales in June were $56,000. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $37,000 in cash and $4,900 in loans payable. A minimum cash balance of $37,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $37,000. 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 $37,000 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 ($3,900 per month), and rent ($6,400 per month). Problem 20-2A (Algo) Part 2 2. Prepare a cash budget for the months of July, August, and September. Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Enter your final answers in whole dollars. BUILT-TIGHT Cash Budget July August September Beginning cash balance $ Add: Cash receipts Total cash available 37,000 56,625 93,625 62,500 69,250 Ieee Cach naumante for
Built-Tight is preparing its master budget. Budgeted sales and cash payments follow: Budgeted sales July $ 58,500 August $ 74,500 Budgeted cash payments for Direct materials Direct labor Overhead 13,340 3,260 16,700 September $ 53,500 16,060 3,940 20,100 13,660 3,340 17,100 Sales to customers are 25% cash and 75% on credit. Sales in June were $56,000. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $37,000 in cash and $4,900 in loans payable. A minimum cash balance of $37,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $37,000. 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 $37,000 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 ($3,900 per month), and rent ($6,400 per month). Problem 20-2A (Algo) Part 2 2. Prepare a cash budget for the months of July, August, and September. Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Enter your final answers in whole dollars. BUILT-TIGHT Cash Budget July August September Beginning cash balance $ Add: Cash receipts Total cash available 37,000 56,625 93,625 62,500 69,250 Ieee Cach naumante for
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Built-Tight is preparing its master budget. Budgeted sales and cash payments follow:
Budgeted sales
July
$ 58,500
August
$ 74,500
Budgeted cash payments for
Direct materials
Direct labor
Overhead
13,340
3,260
16,700
September
$ 53,500
16,060
3,940
20,100
13,660
3,340
17,100
Sales to customers are 25% cash and 75% on credit. Sales in June were $56,000. All credit sales are collected in the
month following the sale. The June 30 balance sheet includes balances of $37,000 in cash and $4,900 in loans payable. A
minimum cash balance of $37,000 is required. Loans are obtained at the end of any month when the preliminary cash
balance is below $37,000. 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 $37,000 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 ($3,900 per month), and rent ($6,400 per
month).
Problem 20-2A (Algo) Part 2
2. Prepare a cash budget for the months of July, August, and September.
Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Enter your final answers in
whole dollars.
BUILT-TIGHT
Cash Budget
July
August
September
Beginning cash balance
$
Add: Cash receipts
Total cash available
37,000
56,625
93,625
62,500
69,250
Ieee Cach naumante for
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