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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![July
$58,500 $74, 500
September
$ 53,500
August
Budgeted sales
Budgeted cash payments for
Direct materials
16,060
3,940
20,100
13,340
3,260
16,700
13,660
3,340
17,100
Direct labor
Factory overhead
Sales are 25% cash and 75% on credit. All credit sales are collected in the month following the sale. The June 30 balance
sheet includes balances of $15,000 in cash; $44,900 in accounts receivable; $4,400 in accounts payable; and a $4,900
balance in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end of any month
when a cash shortage occurs. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at
each month-end. If an excess balance of cash exists, loans are repaid at the end of the month. Operating 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).
1. Prepare a cash receipts budget for July, August, and September.
BUILT-TIGHT
Cash Receipts Budget
For July, August, and September
July
August
September
Less: ending accounts receivable
Cash receipts from:
Total cash receipts
$
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F239102d1-04c8-4dcb-a4a3-60cc6d722931%2F81a84b9c-3952-4b5d-bd15-9693d2ddd22e%2Ftszyzip_processed.png&w=3840&q=75)
Transcribed Image Text:July
$58,500 $74, 500
September
$ 53,500
August
Budgeted sales
Budgeted cash payments for
Direct materials
16,060
3,940
20,100
13,340
3,260
16,700
13,660
3,340
17,100
Direct labor
Factory overhead
Sales are 25% cash and 75% on credit. All credit sales are collected in the month following the sale. The June 30 balance
sheet includes balances of $15,000 in cash; $44,900 in accounts receivable; $4,400 in accounts payable; and a $4,900
balance in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end of any month
when a cash shortage occurs. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at
each month-end. If an excess balance of cash exists, loans are repaid at the end of the month. Operating 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).
1. Prepare a cash receipts budget for July, August, and September.
BUILT-TIGHT
Cash Receipts Budget
For July, August, and September
July
August
September
Less: ending accounts receivable
Cash receipts from:
Total cash receipts
$
$
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