Required information [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 $ 60,000 August $ 76,000 September $ 52,000 Budgeted cash payments for Direct materials Direct labor Overhead 16,960 4,840 21,000 14,240 4,160 17,600 14,560 4,240 18,000 Sales to customers are 30% cash and 70% on credit. Sales in June were $62,000. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $31,000 in cash and $5,800 in loans payable. A minimum cash balance of $31,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $31,000. 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 $31,000 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 ($4,800 per month), and rent ($7,300 per month). 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 $ 60,000 $ 76,000 $ 52,000
Required information [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 $ 60,000 August $ 76,000 September $ 52,000 Budgeted cash payments for Direct materials Direct labor Overhead 16,960 4,840 21,000 14,240 4,160 17,600 14,560 4,240 18,000 Sales to customers are 30% cash and 70% on credit. Sales in June were $62,000. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $31,000 in cash and $5,800 in loans payable. A minimum cash balance of $31,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $31,000. 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 $31,000 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 ($4,800 per month), and rent ($7,300 per month). 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 $ 60,000 $ 76,000 $ 52,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
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Required information
[The following information applies to the questions displayed below]
Built-Tight is preparing its master budget. Budgeted sales and cash payments follow:
July
Budgeted sales
$ 60,000
August
$ 76,000
September
$ 52,000
Budgeted cash payments for
Direct materials
Direct labor
Overhead
16,960
4,840
21,000
14,240
4,160
17,600
14,560
4,240
18,000
Sales to customers are 30% cash and 70% on credit. Sales in June were $62,000. All credit sales are collected in the
month following the sale. The June 30 balance sheet includes balances of $31,000 in cash and $5,800 in loans payable. A
minimum cash balance of $31,000 is required. Loans are obtained at the end of any month when the preliminary cash
balance is below $31,000. 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 $31,000 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 ($4,800 per month), and rent ($7,300 per
month).
1. Prepare a schedule of cash receipts for the months of July, August, and September.
Sales
Cash receipts from
BUILT-TIGHT
Schedule of Cash Receipts from Sales
July
August September
$ 60,000 $ 76,000 $ 52,000
Total cash receipts](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc0a9fa64-8283-48b3-9694-4a80f299b1a1%2F68ea30a1-5bbc-4741-8f51-872c1c3a6930%2F9tvibyn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below]
Built-Tight is preparing its master budget. Budgeted sales and cash payments follow:
July
Budgeted sales
$ 60,000
August
$ 76,000
September
$ 52,000
Budgeted cash payments for
Direct materials
Direct labor
Overhead
16,960
4,840
21,000
14,240
4,160
17,600
14,560
4,240
18,000
Sales to customers are 30% cash and 70% on credit. Sales in June were $62,000. All credit sales are collected in the
month following the sale. The June 30 balance sheet includes balances of $31,000 in cash and $5,800 in loans payable. A
minimum cash balance of $31,000 is required. Loans are obtained at the end of any month when the preliminary cash
balance is below $31,000. 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 $31,000 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 ($4,800 per month), and rent ($7,300 per
month).
1. Prepare a schedule of cash receipts for the months of July, August, and September.
Sales
Cash receipts from
BUILT-TIGHT
Schedule of Cash Receipts from Sales
July
August September
$ 60,000 $ 76,000 $ 52,000
Total cash receipts
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