July$58,500 $74, 500September$ 53,500AugustBudgeted salesBudgeted cash payments forDirect materials16,0603,94020,10013,3403,26016,70013,6603,34017,100Direct laborFactory overheadSales are 25% cash and 75% on credit. All credit sales are collected in the month following the sale. The June 30 balancesheet includes balances of $15,000 in cash; $44,900 in accounts receivable; $4,400 in accounts payable; and a $4,900balance in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end of any monthwhen a cash shortage occurs. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid ateach month-end. If an excess balance of cash exists, loans are repaid at the end of the month. Operating expenses arepaid in the month incurred and consist of sales commissions (10% of sales), office salaries ($3,900 per month), and rent($6,400 per month).1. Prepare a cash receipts budget for July, August, and September.BUILT-TIGHTCash Receipts BudgetFor July, August, and SeptemberJulyAugustSeptemberLess: ending accounts receivableCash receipts from:Total cash receipts$$

Answered: onth following the sale. The Ju $4,400…

onth following the sale. The Ju $4,400 in accounts payable; a ans are obtained at the end o g-of-the-month loan balance end of the month. Operating e

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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