Problem 22-2A (Algo) Manufacturing: Cash budget and schedule of cash payments LO P2 [The following information applies to the questions displayed below.] Built-Tight is preparing its master budget. Budgeted sales and cash payments follow: Budgeted sales July $ 63,000 August $ 79,000 September $ 49,000 Budgeted cash payments for Direct materials 16,360 13,648 13,960 Direct labor Overhead 4,240 20,400 3,560 17,000 3,640 17,400 Sales to customers are 25% cash and 75% on credit. Sales in June were $57,500. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $19,000 in cash and $5,200 in loans payable. A minimum cash balance of $19,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $19,000. 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 $19,000 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 ($4,200 per month), and rent ($6,700 per month). Problem 22-2A (Algo) Part 1 1. Prepare a schedule of cash receipts for the months of July, August, and September. Sales Cash receipts from: Total cash receipts BUILT-TIGHT Schedule of Cash Receipts from Sales July August September $ 63,000 $ 79,000 $ 49,000
Problem 22-2A (Algo) Manufacturing: Cash budget and schedule of cash payments LO P2 [The following information applies to the questions displayed below.] Built-Tight is preparing its master budget. Budgeted sales and cash payments follow: Budgeted sales July $ 63,000 August $ 79,000 September $ 49,000 Budgeted cash payments for Direct materials 16,360 13,648 13,960 Direct labor Overhead 4,240 20,400 3,560 17,000 3,640 17,400 Sales to customers are 25% cash and 75% on credit. Sales in June were $57,500. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $19,000 in cash and $5,200 in loans payable. A minimum cash balance of $19,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $19,000. 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 $19,000 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 ($4,200 per month), and rent ($6,700 per month). Problem 22-2A (Algo) Part 1 1. Prepare a schedule of cash receipts for the months of July, August, and September. Sales Cash receipts from: Total cash receipts BUILT-TIGHT Schedule of Cash Receipts from Sales July August September $ 63,000 $ 79,000 $ 49,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Problem 22-2A (Algo) Manufacturing: Cash budget and schedule of cash payments LO P2
[The following information applies to the questions displayed below.]
Built-Tight is preparing its master budget. Budgeted sales and cash payments follow:
Budgeted sales
July
$ 63,000
August
$ 79,000
September
$ 49,000
Budgeted cash payments for
Direct materials
16,360
13,648
13,960
Direct labor
Overhead
4,240
20,400
3,560
17,000
3,640
17,400
Sales to customers are 25% cash and 75% on credit. Sales in June were $57,500. All credit sales are collected in the
month following the sale. The June 30 balance sheet includes balances of $19,000 in cash and $5,200 in loans payable. A
minimum cash balance of $19,000 is required. Loans are obtained at the end of any month when the preliminary cash
balance is below $19,000. 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 $19,000 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 ($4,200 per month), and rent ($6,700 per
month).
Problem 22-2A (Algo) Part 1
1. Prepare a schedule of cash receipts for the months of July, August, and September.
Sales
Cash receipts from:
Total cash receipts
BUILT-TIGHT
Schedule of Cash Receipts from Sales
July
August September
$ 63,000 $ 79,000 $ 49,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0b7ff87b-5f8d-405a-bbdb-731f9fc1a4a5%2F5163d8b2-4d21-4da9-adc9-11538b9f330c%2F2yoh9e_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 22-2A (Algo) Manufacturing: Cash budget and schedule of cash payments LO P2
[The following information applies to the questions displayed below.]
Built-Tight is preparing its master budget. Budgeted sales and cash payments follow:
Budgeted sales
July
$ 63,000
August
$ 79,000
September
$ 49,000
Budgeted cash payments for
Direct materials
16,360
13,648
13,960
Direct labor
Overhead
4,240
20,400
3,560
17,000
3,640
17,400
Sales to customers are 25% cash and 75% on credit. Sales in June were $57,500. All credit sales are collected in the
month following the sale. The June 30 balance sheet includes balances of $19,000 in cash and $5,200 in loans payable. A
minimum cash balance of $19,000 is required. Loans are obtained at the end of any month when the preliminary cash
balance is below $19,000. 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 $19,000 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 ($4,200 per month), and rent ($6,700 per
month).
Problem 22-2A (Algo) Part 1
1. Prepare a schedule of cash receipts for the months of July, August, and September.
Sales
Cash receipts from:
Total cash receipts
BUILT-TIGHT
Schedule of Cash Receipts from Sales
July
August September
$ 63,000 $ 79,000 $ 49,000
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