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 Budgeted cash payments for Direct materials Direct labor Overhead July $ 60,000 16,960 4,840 21,000 BUILT-TIGHT Cash Budget July August $ 76,000 14,240 4,160 17,600 August September $ 52,000 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. Loanspare 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). 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. 14,560 4,240 18,000 September
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 Budgeted cash payments for Direct materials Direct labor Overhead July $ 60,000 16,960 4,840 21,000 BUILT-TIGHT Cash Budget July August $ 76,000 14,240 4,160 17,600 August September $ 52,000 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. Loanspare 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). 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. 14,560 4,240 18,000 September
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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
help me
![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
Budgeted cash payments for
Direct materials
Direct labor
Overhead
July
$ 60,000
wak kalmas
16,960
4,840
21,000
BUILT-TIGHT
Cash Budget
July
August
$ 76,000
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).
sent
14,240.
4,160
17,600
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.
August
September
$ 52,000
nnnn
14,560
4,240
18,000
September](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4628a3e0-e47d-45a5-9da4-63b4693574a3%2F2dc6ce58-eaa5-4bca-9571-59567260ef2f%2Fbuuyko_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:
Budgeted sales
Budgeted cash payments for
Direct materials
Direct labor
Overhead
July
$ 60,000
wak kalmas
16,960
4,840
21,000
BUILT-TIGHT
Cash Budget
July
August
$ 76,000
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).
sent
14,240.
4,160
17,600
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.
August
September
$ 52,000
nnnn
14,560
4,240
18,000
September
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education