[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 $ 55,000 August $ 71,000 Budgeted cash payments for Direct materials Direct labor Overhead 15,360 3,240 19,400 12,640 2,560 16,000 September $ 57,000 12,960 2,640 16,400 Sales to customers are 20% cash and 80% on credit. Sales in June were $52,500. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $51,000 in cash and $4,200 in loans payable. A minimum cash balance of $51,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $51,000. 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 $51,000 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 ($3,200 per month), and rent ($5,700 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 $ 55,000 $ 71,000 $ 57,000 Total cash receipts $ 0 $ 0 $ 0
[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 $ 55,000 August $ 71,000 Budgeted cash payments for Direct materials Direct labor Overhead 15,360 3,240 19,400 12,640 2,560 16,000 September $ 57,000 12,960 2,640 16,400 Sales to customers are 20% cash and 80% on credit. Sales in June were $52,500. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $51,000 in cash and $4,200 in loans payable. A minimum cash balance of $51,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $51,000. 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 $51,000 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 ($3,200 per month), and rent ($5,700 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 $ 55,000 $ 71,000 $ 57,000 Total cash receipts $ 0 $ 0 $ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Hardev
![[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
$ 55,000
August
$ 71,000
Budgeted cash payments for
Direct materials
Direct labor
Overhead
15,360
3,240
19,400
12,640
2,560
16,000
September
$ 57,000
12,960
2,640
16,400
Sales to customers are 20% cash and 80% on credit. Sales in June were $52,500. All credit sales are collected in the
month following the sale. The June 30 balance sheet includes balances of $51,000 in cash and $4,200 in loans payable. A
minimum cash balance of $51,000 is required. Loans are obtained at the end of any month when the preliminary cash
balance is below $51,000. 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 $51,000 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 ($3,200 per month), and rent ($5,700 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
$ 55,000 $ 71,000 $ 57,000
Total cash receipts
$
0 $
0 $
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9f81d598-e6ad-449a-ab88-f2d4295585ee%2Fd170c5c9-e8b6-4d43-aada-d4681e8e37a7%2Fb0nqzxu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[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
$ 55,000
August
$ 71,000
Budgeted cash payments for
Direct materials
Direct labor
Overhead
15,360
3,240
19,400
12,640
2,560
16,000
September
$ 57,000
12,960
2,640
16,400
Sales to customers are 20% cash and 80% on credit. Sales in June were $52,500. All credit sales are collected in the
month following the sale. The June 30 balance sheet includes balances of $51,000 in cash and $4,200 in loans payable. A
minimum cash balance of $51,000 is required. Loans are obtained at the end of any month when the preliminary cash
balance is below $51,000. 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 $51,000 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 ($3,200 per month), and rent ($5,700 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
$ 55,000 $ 71,000 $ 57,000
Total cash receipts
$
0 $
0 $
0
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