[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 $ 58,000 Beginning cash balance 15,960 3,840 20,000 BUILT-TIGHT Cash Budget July August $ 74,000 13,240 3,160 16,600 Sales to customers are 25% cash and 75% on credit. Sales in June were $55,500. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $39,000 in cash and $4,800 in loans payable. A minimum cash balance of $39,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $39,000. 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 $39,000 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 ($3,800 per month), and rent ($6,300 per month). August September $ 54,000 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. 13,560 3,240 17,000 September
[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 $ 58,000 Beginning cash balance 15,960 3,840 20,000 BUILT-TIGHT Cash Budget July August $ 74,000 13,240 3,160 16,600 Sales to customers are 25% cash and 75% on credit. Sales in June were $55,500. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $39,000 in cash and $4,800 in loans payable. A minimum cash balance of $39,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $39,000. 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 $39,000 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 ($3,800 per month), and rent ($6,300 per month). August September $ 54,000 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. 13,560 3,240 17,000 September
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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.
Beginning cash balance
Total cash available
Less: Cash payments for
Total cash payments
Preliminary cash balance
Loan activity
Additional loan
Repayment of loan to bank
Ending cash balance
Loan balance-Beginning of month
Additional loan (loan repayment)
Loan balance-End of month
BUILT-TIGHT
Cash Budget
July
Loan balance
July
0
0
August
August
0
September
September
0
0
![Required information
[The following information applies to the questions displayed below]
Built-Tight is preparing its master budget. Budgeted sales and cash payments follow:
September
$ 54,000
Budgeted sales
Budgeted cash payments for
Direct materials
Direct labor
Overhead
July
$ 58,000
Beginning cash balance
15,960
3,840
20,000
BUILT-TIGHT
Cash Budget
July
August
$ 74,000
Sales to customers are 25% cash and 75% on credit. Sales in June were $55,500. All credit sales are collected in the
month following the sale. The June 30 balance sheet includes balances of $39,000 in cash and $4,800 in loans payable.
A minimum cash balance of $39,000 is required. Loans are obtained at the end of any month when the preliminary cash
balance is below $39,000. 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 $39,000 is used to repay loans a month-end. Expenses are paid in the
month incurred and consist of sales commissions (10% of sales), office salaries ($3,800 per month), and rent ($6,300 per
month).
13,240
3,160
16,600
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
13,560
3,240
17,000
September](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faae49254-63ab-46ff-80f2-ec8d4feafcfa%2F6610ccbd-db3e-4b08-a61d-1fe87398b00d%2Fgf9gt5b_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:
September
$ 54,000
Budgeted sales
Budgeted cash payments for
Direct materials
Direct labor
Overhead
July
$ 58,000
Beginning cash balance
15,960
3,840
20,000
BUILT-TIGHT
Cash Budget
July
August
$ 74,000
Sales to customers are 25% cash and 75% on credit. Sales in June were $55,500. All credit sales are collected in the
month following the sale. The June 30 balance sheet includes balances of $39,000 in cash and $4,800 in loans payable.
A minimum cash balance of $39,000 is required. Loans are obtained at the end of any month when the preliminary cash
balance is below $39,000. 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 $39,000 is used to repay loans a month-end. Expenses are paid in the
month incurred and consist of sales commissions (10% of sales), office salaries ($3,800 per month), and rent ($6,300 per
month).
13,240
3,160
16,600
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
13,560
3,240
17,000
September
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