The Cash receipts Budget for July, August and September

Question

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Answer 1

Question

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

Chapter 22, Problem 2BPSB

Requirement-1:

To determine

To prepare: The Cash receipts Budget for July, August and September

Requirement-1:

Expert Solution

Answer to Problem 2BPSB

Solution: The Cash receipts Budget for July, August and September is as follows:

	July	August	September
Budgeted Cash Receipts	$ 59,680	$ 66,840	$ 74,200

Explanation of Solution

Explanation: The Cash receipts Budget for July, August and September is prepared as follows:

Cash Receipts	July	August	September
Budgeted Sales (A)	$ 63,400	$ 80,600	$ 48,600
Cash Sales (B) = (A*20%)	$ 12,680	$ 16,120	$ 9,720
Credit Sales (C) = (A*80%)	$ 50,720	$ 64,480	$ 38,880
Collection of Sales:
Cash Sales (in the same month)	$ 12,680	$ 16,120	$ 9,720
Credit Sales (in the next month)	$ 47,000	$ 50,720	$ 64,480
Budgeted Cash Receipts	$ 59,680	$ 66,840	$ 74,200

Conclusion

The Cash receipts Budget for July, August and September is as follows:

	July	August	September
Budgeted Cash Receipts	$ 59,680	$ 66,840	$ 74,200

Requirement-2:

To determine

To prepare: The Cash Budget for July, August and September

Requirement-2:

Expert Solution

Answer to Problem 2BPSB

Solution: The Cash Budget for July, August and September is as follows:

Cash Budget:	July	August	September

Beginning Cash Balance	$ 12,900	$ 12,600	$ 24,371
Budgeted Cash Receipts	$ 59,680	$ 66,840	$ 74,200
Budgeted Cash payments:
Direct Material	$ 12,480	$ 9,900	$ 10,140
Direct Labor	$ 10,400	$ 8,250	$ 8,450
Factory Overhead	$ 18,720	$ 14,850	$ 15,210
Sales Commission	$ 6,340	$ 8,060	$ 4,860
Office Salaries	$ 4,600	$ 4,600	$ 4,600
Rent	$ 7,100	$ 7,100	$ 7,100
Interest on loan	$ 26	$ 23	$ -
Total Budgeted Cash Payments	$ 59,666	$ 52,783	$ 50,360
Cash Surplus/(Deficit)	$ 12,914	$ 26,657	$ 48,211

Beginning Loan balance	$ 2,600	$ 2,286	$ -
Loan Taken		$ -
Loan Paid	$ 314	$ 2,286
Ending Loan balance	$ 2,286	$ -	$ -

Ending Cash balance	$ 12,600	$ 24,371	$ 48,211

Explanation of Solution

Explanation: The Cash Budget for July, August and September is prepared as follows:

Cash Budget:	July	August	September

Beginning Cash Balance (A)	$ 12,900	$ 12,600	$ 24,371
Budgeted Cash Receipts (B)	$ 59,680	$ 66,840	$ 74,200
Budgeted Cash payments:
Direct Material	$ 12,480	$ 9,900	$ 10,140
Direct Labor	$ 10,400	$ 8,250	$ 8,450
Factory Overhead	$ 18,720	$ 14,850	$ 15,210
Sales Commission (10% of sales)	$ 6,340	$ 8,060	$ 4,860
Office Salaries	$ 4,600	$ 4,600	$ 4,600
Rent	$ 7,100	$ 7,100	$ 7,100
Interest on loan (1% of beginning loan balance)	$ 26	$ 23	$ -
Total Budgeted Cash Payments (C)	$ 59,666	$ 52,783	$ 50,360
Cash Surplus/(Deficit) (D) =A+B-C =	$ 12,914	$ 26,657	$ 48,211

Beginning Loan balance	$ 2,600	$ 2,286	$ -
Loan Taken (E)		$ -
Loan Paid (F)	$ 314	$ 2,286
Ending Loan balance	$ 2,286	$ -	$ -

Ending Cash balance = D+E-F=	$ 12,600	$ 24,371	$ 48,211

Conclusion

Conclusion: The Cash Budget for July, August and September is prepared using all the budgets information.

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Answer 2

Question

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

Chapter 22, Problem 2BPSB

Requirement-1:

To determine

To prepare: The Cash receipts Budget for July, August and September

Requirement-1:

Expert Solution

Answer to Problem 2BPSB

Solution: The Cash receipts Budget for July, August and September is as follows:

	July	August	September
Budgeted Cash Receipts	$ 59,680	$ 66,840	$ 74,200

Explanation of Solution

Explanation: The Cash receipts Budget for July, August and September is prepared as follows:

Cash Receipts	July	August	September
Budgeted Sales (A)	$ 63,400	$ 80,600	$ 48,600
Cash Sales (B) = (A*20%)	$ 12,680	$ 16,120	$ 9,720
Credit Sales (C) = (A*80%)	$ 50,720	$ 64,480	$ 38,880
Collection of Sales:
Cash Sales (in the same month)	$ 12,680	$ 16,120	$ 9,720
Credit Sales (in the next month)	$ 47,000	$ 50,720	$ 64,480
Budgeted Cash Receipts	$ 59,680	$ 66,840	$ 74,200

Conclusion

The Cash receipts Budget for July, August and September is as follows:

	July	August	September
Budgeted Cash Receipts	$ 59,680	$ 66,840	$ 74,200

Requirement-2:

To determine

To prepare: The Cash Budget for July, August and September

Requirement-2:

Expert Solution

Answer to Problem 2BPSB

Solution: The Cash Budget for July, August and September is as follows:

Cash Budget:	July	August	September

Beginning Cash Balance	$ 12,900	$ 12,600	$ 24,371
Budgeted Cash Receipts	$ 59,680	$ 66,840	$ 74,200
Budgeted Cash payments:
Direct Material	$ 12,480	$ 9,900	$ 10,140
Direct Labor	$ 10,400	$ 8,250	$ 8,450
Factory Overhead	$ 18,720	$ 14,850	$ 15,210
Sales Commission	$ 6,340	$ 8,060	$ 4,860
Office Salaries	$ 4,600	$ 4,600	$ 4,600
Rent	$ 7,100	$ 7,100	$ 7,100
Interest on loan	$ 26	$ 23	$ -
Total Budgeted Cash Payments	$ 59,666	$ 52,783	$ 50,360
Cash Surplus/(Deficit)	$ 12,914	$ 26,657	$ 48,211

Beginning Loan balance	$ 2,600	$ 2,286	$ -
Loan Taken		$ -
Loan Paid	$ 314	$ 2,286
Ending Loan balance	$ 2,286	$ -	$ -

Ending Cash balance	$ 12,600	$ 24,371	$ 48,211

Explanation of Solution

Explanation: The Cash Budget for July, August and September is prepared as follows:

Cash Budget:	July	August	September

Beginning Cash Balance (A)	$ 12,900	$ 12,600	$ 24,371
Budgeted Cash Receipts (B)	$ 59,680	$ 66,840	$ 74,200
Budgeted Cash payments:
Direct Material	$ 12,480	$ 9,900	$ 10,140
Direct Labor	$ 10,400	$ 8,250	$ 8,450
Factory Overhead	$ 18,720	$ 14,850	$ 15,210
Sales Commission (10% of sales)	$ 6,340	$ 8,060	$ 4,860
Office Salaries	$ 4,600	$ 4,600	$ 4,600
Rent	$ 7,100	$ 7,100	$ 7,100
Interest on loan (1% of beginning loan balance)	$ 26	$ 23	$ -
Total Budgeted Cash Payments (C)	$ 59,666	$ 52,783	$ 50,360
Cash Surplus/(Deficit) (D) =A+B-C =	$ 12,914	$ 26,657	$ 48,211

Beginning Loan balance	$ 2,600	$ 2,286	$ -
Loan Taken (E)		$ -
Loan Paid (F)	$ 314	$ 2,286
Ending Loan balance	$ 2,286	$ -	$ -

Ending Cash balance = D+E-F=	$ 12,600	$ 24,371	$ 48,211

Conclusion

Conclusion: The Cash Budget for July, August and September is prepared using all the budgets information.

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Answer 3

Question

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

Chapter 22, Problem 2BPSB

Requirement-1:

To determine

To prepare: The Cash receipts Budget for July, August and September

Requirement-1:

Expert Solution

Answer to Problem 2BPSB

Solution: The Cash receipts Budget for July, August and September is as follows:

	July	August	September
Budgeted Cash Receipts	$ 59,680	$ 66,840	$ 74,200

Explanation of Solution

Explanation: The Cash receipts Budget for July, August and September is prepared as follows:

Cash Receipts	July	August	September
Budgeted Sales (A)	$ 63,400	$ 80,600	$ 48,600
Cash Sales (B) = (A*20%)	$ 12,680	$ 16,120	$ 9,720
Credit Sales (C) = (A*80%)	$ 50,720	$ 64,480	$ 38,880
Collection of Sales:
Cash Sales (in the same month)	$ 12,680	$ 16,120	$ 9,720
Credit Sales (in the next month)	$ 47,000	$ 50,720	$ 64,480
Budgeted Cash Receipts	$ 59,680	$ 66,840	$ 74,200

Conclusion

The Cash receipts Budget for July, August and September is as follows:

	July	August	September
Budgeted Cash Receipts	$ 59,680	$ 66,840	$ 74,200

Requirement-2:

To determine

To prepare: The Cash Budget for July, August and September

Requirement-2:

Expert Solution

Answer to Problem 2BPSB

Solution: The Cash Budget for July, August and September is as follows:

Cash Budget:	July	August	September

Beginning Cash Balance	$ 12,900	$ 12,600	$ 24,371
Budgeted Cash Receipts	$ 59,680	$ 66,840	$ 74,200
Budgeted Cash payments:
Direct Material	$ 12,480	$ 9,900	$ 10,140
Direct Labor	$ 10,400	$ 8,250	$ 8,450
Factory Overhead	$ 18,720	$ 14,850	$ 15,210
Sales Commission	$ 6,340	$ 8,060	$ 4,860
Office Salaries	$ 4,600	$ 4,600	$ 4,600
Rent	$ 7,100	$ 7,100	$ 7,100
Interest on loan	$ 26	$ 23	$ -
Total Budgeted Cash Payments	$ 59,666	$ 52,783	$ 50,360
Cash Surplus/(Deficit)	$ 12,914	$ 26,657	$ 48,211

Beginning Loan balance	$ 2,600	$ 2,286	$ -
Loan Taken		$ -
Loan Paid	$ 314	$ 2,286
Ending Loan balance	$ 2,286	$ -	$ -

Ending Cash balance	$ 12,600	$ 24,371	$ 48,211

Explanation of Solution

Explanation: The Cash Budget for July, August and September is prepared as follows:

Cash Budget:	July	August	September

Beginning Cash Balance (A)	$ 12,900	$ 12,600	$ 24,371
Budgeted Cash Receipts (B)	$ 59,680	$ 66,840	$ 74,200
Budgeted Cash payments:
Direct Material	$ 12,480	$ 9,900	$ 10,140
Direct Labor	$ 10,400	$ 8,250	$ 8,450
Factory Overhead	$ 18,720	$ 14,850	$ 15,210
Sales Commission (10% of sales)	$ 6,340	$ 8,060	$ 4,860
Office Salaries	$ 4,600	$ 4,600	$ 4,600
Rent	$ 7,100	$ 7,100	$ 7,100
Interest on loan (1% of beginning loan balance)	$ 26	$ 23	$ -
Total Budgeted Cash Payments (C)	$ 59,666	$ 52,783	$ 50,360
Cash Surplus/(Deficit) (D) =A+B-C =	$ 12,914	$ 26,657	$ 48,211

Beginning Loan balance	$ 2,600	$ 2,286	$ -
Loan Taken (E)		$ -
Loan Paid (F)	$ 314	$ 2,286
Ending Loan balance	$ 2,286	$ -	$ -

Ending Cash balance = D+E-F=	$ 12,600	$ 24,371	$ 48,211

Conclusion

Conclusion: The Cash Budget for July, August and September is prepared using all the budgets information.

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Answer 4

Question

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

Chapter 22, Problem 2BPSB

Requirement-1:

To determine

To prepare: The Cash receipts Budget for July, August and September

Requirement-1:

Expert Solution

Answer to Problem 2BPSB

Solution: The Cash receipts Budget for July, August and September is as follows:

	July	August	September
Budgeted Cash Receipts	$ 59,680	$ 66,840	$ 74,200

Explanation of Solution

Explanation: The Cash receipts Budget for July, August and September is prepared as follows:

Cash Receipts	July	August	September
Budgeted Sales (A)	$ 63,400	$ 80,600	$ 48,600
Cash Sales (B) = (A*20%)	$ 12,680	$ 16,120	$ 9,720
Credit Sales (C) = (A*80%)	$ 50,720	$ 64,480	$ 38,880
Collection of Sales:
Cash Sales (in the same month)	$ 12,680	$ 16,120	$ 9,720
Credit Sales (in the next month)	$ 47,000	$ 50,720	$ 64,480
Budgeted Cash Receipts	$ 59,680	$ 66,840	$ 74,200

Conclusion

The Cash receipts Budget for July, August and September is as follows:

	July	August	September
Budgeted Cash Receipts	$ 59,680	$ 66,840	$ 74,200

Requirement-2:

To determine

To prepare: The Cash Budget for July, August and September

Requirement-2:

Expert Solution

Answer to Problem 2BPSB

Solution: The Cash Budget for July, August and September is as follows:

Cash Budget:	July	August	September

Beginning Cash Balance	$ 12,900	$ 12,600	$ 24,371
Budgeted Cash Receipts	$ 59,680	$ 66,840	$ 74,200
Budgeted Cash payments:
Direct Material	$ 12,480	$ 9,900	$ 10,140
Direct Labor	$ 10,400	$ 8,250	$ 8,450
Factory Overhead	$ 18,720	$ 14,850	$ 15,210
Sales Commission	$ 6,340	$ 8,060	$ 4,860
Office Salaries	$ 4,600	$ 4,600	$ 4,600
Rent	$ 7,100	$ 7,100	$ 7,100
Interest on loan	$ 26	$ 23	$ -
Total Budgeted Cash Payments	$ 59,666	$ 52,783	$ 50,360
Cash Surplus/(Deficit)	$ 12,914	$ 26,657	$ 48,211

Beginning Loan balance	$ 2,600	$ 2,286	$ -
Loan Taken		$ -
Loan Paid	$ 314	$ 2,286
Ending Loan balance	$ 2,286	$ -	$ -

Ending Cash balance	$ 12,600	$ 24,371	$ 48,211

Explanation of Solution

Explanation: The Cash Budget for July, August and September is prepared as follows:

Cash Budget:	July	August	September

Beginning Cash Balance (A)	$ 12,900	$ 12,600	$ 24,371
Budgeted Cash Receipts (B)	$ 59,680	$ 66,840	$ 74,200
Budgeted Cash payments:
Direct Material	$ 12,480	$ 9,900	$ 10,140
Direct Labor	$ 10,400	$ 8,250	$ 8,450
Factory Overhead	$ 18,720	$ 14,850	$ 15,210
Sales Commission (10% of sales)	$ 6,340	$ 8,060	$ 4,860
Office Salaries	$ 4,600	$ 4,600	$ 4,600
Rent	$ 7,100	$ 7,100	$ 7,100
Interest on loan (1% of beginning loan balance)	$ 26	$ 23	$ -
Total Budgeted Cash Payments (C)	$ 59,666	$ 52,783	$ 50,360
Cash Surplus/(Deficit) (D) =A+B-C =	$ 12,914	$ 26,657	$ 48,211

Beginning Loan balance	$ 2,600	$ 2,286	$ -
Loan Taken (E)		$ -
Loan Paid (F)	$ 314	$ 2,286
Ending Loan balance	$ 2,286	$ -	$ -

Ending Cash balance = D+E-F=	$ 12,600	$ 24,371	$ 48,211

Conclusion

Conclusion: The Cash Budget for July, August and September is prepared using all the budgets information.

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Answer 5

Chapter 22, Problem 2BPSB

Requirement-1:

To determine

To prepare: The Cash receipts Budget for July, August and September

Requirement-1:

Expert Solution

Answer to Problem 2BPSB

Solution: The Cash receipts Budget for July, August and September is as follows:

	July	August	September
Budgeted Cash Receipts	$ 59,680	$ 66,840	$ 74,200

Explanation of Solution

Explanation: The Cash receipts Budget for July, August and September is prepared as follows:

Cash Receipts	July	August	September
Budgeted Sales (A)	$ 63,400	$ 80,600	$ 48,600
Cash Sales (B) = (A*20%)	$ 12,680	$ 16,120	$ 9,720
Credit Sales (C) = (A*80%)	$ 50,720	$ 64,480	$ 38,880
Collection of Sales:
Cash Sales (in the same month)	$ 12,680	$ 16,120	$ 9,720
Credit Sales (in the next month)	$ 47,000	$ 50,720	$ 64,480
Budgeted Cash Receipts	$ 59,680	$ 66,840	$ 74,200

Conclusion

The Cash receipts Budget for July, August and September is as follows:

	July	August	September
Budgeted Cash Receipts	$ 59,680	$ 66,840	$ 74,200

Requirement-2:

To determine

To prepare: The Cash Budget for July, August and September

Requirement-2:

Expert Solution

Answer to Problem 2BPSB

Solution: The Cash Budget for July, August and September is as follows:

Cash Budget:	July	August	September

Beginning Cash Balance	$ 12,900	$ 12,600	$ 24,371
Budgeted Cash Receipts	$ 59,680	$ 66,840	$ 74,200
Budgeted Cash payments:
Direct Material	$ 12,480	$ 9,900	$ 10,140
Direct Labor	$ 10,400	$ 8,250	$ 8,450
Factory Overhead	$ 18,720	$ 14,850	$ 15,210
Sales Commission	$ 6,340	$ 8,060	$ 4,860
Office Salaries	$ 4,600	$ 4,600	$ 4,600
Rent	$ 7,100	$ 7,100	$ 7,100
Interest on loan	$ 26	$ 23	$ -
Total Budgeted Cash Payments	$ 59,666	$ 52,783	$ 50,360
Cash Surplus/(Deficit)	$ 12,914	$ 26,657	$ 48,211

Beginning Loan balance	$ 2,600	$ 2,286	$ -
Loan Taken		$ -
Loan Paid	$ 314	$ 2,286
Ending Loan balance	$ 2,286	$ -	$ -

Ending Cash balance	$ 12,600	$ 24,371	$ 48,211

Explanation of Solution

Explanation: The Cash Budget for July, August and September is prepared as follows:

Cash Budget:	July	August	September

Beginning Cash Balance (A)	$ 12,900	$ 12,600	$ 24,371
Budgeted Cash Receipts (B)	$ 59,680	$ 66,840	$ 74,200
Budgeted Cash payments:
Direct Material	$ 12,480	$ 9,900	$ 10,140
Direct Labor	$ 10,400	$ 8,250	$ 8,450
Factory Overhead	$ 18,720	$ 14,850	$ 15,210
Sales Commission (10% of sales)	$ 6,340	$ 8,060	$ 4,860
Office Salaries	$ 4,600	$ 4,600	$ 4,600
Rent	$ 7,100	$ 7,100	$ 7,100
Interest on loan (1% of beginning loan balance)	$ 26	$ 23	$ -
Total Budgeted Cash Payments (C)	$ 59,666	$ 52,783	$ 50,360
Cash Surplus/(Deficit) (D) =A+B-C =	$ 12,914	$ 26,657	$ 48,211

Beginning Loan balance	$ 2,600	$ 2,286	$ -
Loan Taken (E)		$ -
Loan Paid (F)	$ 314	$ 2,286
Ending Loan balance	$ 2,286	$ -	$ -

Ending Cash balance = D+E-F=	$ 12,600	$ 24,371	$ 48,211

Conclusion

Conclusion: The Cash Budget for July, August and September is prepared using all the budgets information.

Answer 6

Chapter 22, Problem 2BPSB

Requirement-1:

To determine

To prepare: The Cash receipts Budget for July, August and September

Requirement-1:

Expert Solution

Answer to Problem 2BPSB

Solution: The Cash receipts Budget for July, August and September is as follows:

	July	August	September
Budgeted Cash Receipts	$ 59,680	$ 66,840	$ 74,200

Explanation of Solution

Explanation: The Cash receipts Budget for July, August and September is prepared as follows:

Cash Receipts	July	August	September
Budgeted Sales (A)	$ 63,400	$ 80,600	$ 48,600
Cash Sales (B) = (A*20%)	$ 12,680	$ 16,120	$ 9,720
Credit Sales (C) = (A*80%)	$ 50,720	$ 64,480	$ 38,880
Collection of Sales:
Cash Sales (in the same month)	$ 12,680	$ 16,120	$ 9,720
Credit Sales (in the next month)	$ 47,000	$ 50,720	$ 64,480
Budgeted Cash Receipts	$ 59,680	$ 66,840	$ 74,200

Conclusion

The Cash receipts Budget for July, August and September is as follows:

	July	August	September
Budgeted Cash Receipts	$ 59,680	$ 66,840	$ 74,200

Answer 7

Chapter 22, Problem 2BPSB

Requirement-1:

To determine

To prepare: The Cash receipts Budget for July, August and September

Answer 8

Requirement-1:

Expert Solution

Answer to Problem 2BPSB

Solution: The Cash receipts Budget for July, August and September is as follows:

	July	August	September
Budgeted Cash Receipts	$ 59,680	$ 66,840	$ 74,200

Answer 9

Requirement-1:

Expert Solution

Answer 10

Requirement-1:

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Explanation: The Cash receipts Budget for July, August and September is prepared as follows:

Cash Receipts	July	August	September
Budgeted Sales (A)	$ 63,400	$ 80,600	$ 48,600
Cash Sales (B) = (A*20%)	$ 12,680	$ 16,120	$ 9,720
Credit Sales (C) = (A*80%)	$ 50,720	$ 64,480	$ 38,880
Collection of Sales:
Cash Sales (in the same month)	$ 12,680	$ 16,120	$ 9,720
Credit Sales (in the next month)	$ 47,000	$ 50,720	$ 64,480
Budgeted Cash Receipts	$ 59,680	$ 66,840	$ 74,200

Answer 13

Conclusion

The Cash receipts Budget for July, August and September is as follows:

	July	August	September
Budgeted Cash Receipts	$ 59,680	$ 66,840	$ 74,200

Answer 14

Requirement-2:

To determine

To prepare: The Cash Budget for July, August and September

Requirement-2:

Expert Solution

Answer to Problem 2BPSB

Solution: The Cash Budget for July, August and September is as follows:

Cash Budget:	July	August	September

Beginning Cash Balance	$ 12,900	$ 12,600	$ 24,371
Budgeted Cash Receipts	$ 59,680	$ 66,840	$ 74,200
Budgeted Cash payments:
Direct Material	$ 12,480	$ 9,900	$ 10,140
Direct Labor	$ 10,400	$ 8,250	$ 8,450
Factory Overhead	$ 18,720	$ 14,850	$ 15,210
Sales Commission	$ 6,340	$ 8,060	$ 4,860
Office Salaries	$ 4,600	$ 4,600	$ 4,600
Rent	$ 7,100	$ 7,100	$ 7,100
Interest on loan	$ 26	$ 23	$ -
Total Budgeted Cash Payments	$ 59,666	$ 52,783	$ 50,360
Cash Surplus/(Deficit)	$ 12,914	$ 26,657	$ 48,211

Beginning Loan balance	$ 2,600	$ 2,286	$ -
Loan Taken		$ -
Loan Paid	$ 314	$ 2,286
Ending Loan balance	$ 2,286	$ -	$ -

Ending Cash balance	$ 12,600	$ 24,371	$ 48,211

Explanation of Solution

Explanation: The Cash Budget for July, August and September is prepared as follows:

Cash Budget:	July	August	September

Beginning Cash Balance (A)	$ 12,900	$ 12,600	$ 24,371
Budgeted Cash Receipts (B)	$ 59,680	$ 66,840	$ 74,200
Budgeted Cash payments:
Direct Material	$ 12,480	$ 9,900	$ 10,140
Direct Labor	$ 10,400	$ 8,250	$ 8,450
Factory Overhead	$ 18,720	$ 14,850	$ 15,210
Sales Commission (10% of sales)	$ 6,340	$ 8,060	$ 4,860
Office Salaries	$ 4,600	$ 4,600	$ 4,600
Rent	$ 7,100	$ 7,100	$ 7,100
Interest on loan (1% of beginning loan balance)	$ 26	$ 23	$ -
Total Budgeted Cash Payments (C)	$ 59,666	$ 52,783	$ 50,360
Cash Surplus/(Deficit) (D) =A+B-C =	$ 12,914	$ 26,657	$ 48,211

Beginning Loan balance	$ 2,600	$ 2,286	$ -
Loan Taken (E)		$ -
Loan Paid (F)	$ 314	$ 2,286
Ending Loan balance	$ 2,286	$ -	$ -

Ending Cash balance = D+E-F=	$ 12,600	$ 24,371	$ 48,211

Conclusion

Conclusion: The Cash Budget for July, August and September is prepared using all the budgets information.

Answer 15

Requirement-2:

To determine

To prepare: The Cash Budget for July, August and September

Answer 16

Requirement-2:

Expert Solution

Answer to Problem 2BPSB

Solution: The Cash Budget for July, August and September is as follows:

Cash Budget:	July	August	September

Beginning Cash Balance	$ 12,900	$ 12,600	$ 24,371
Budgeted Cash Receipts	$ 59,680	$ 66,840	$ 74,200
Budgeted Cash payments:
Direct Material	$ 12,480	$ 9,900	$ 10,140
Direct Labor	$ 10,400	$ 8,250	$ 8,450
Factory Overhead	$ 18,720	$ 14,850	$ 15,210
Sales Commission	$ 6,340	$ 8,060	$ 4,860
Office Salaries	$ 4,600	$ 4,600	$ 4,600
Rent	$ 7,100	$ 7,100	$ 7,100
Interest on loan	$ 26	$ 23	$ -
Total Budgeted Cash Payments	$ 59,666	$ 52,783	$ 50,360
Cash Surplus/(Deficit)	$ 12,914	$ 26,657	$ 48,211

Beginning Loan balance	$ 2,600	$ 2,286	$ -
Loan Taken		$ -
Loan Paid	$ 314	$ 2,286
Ending Loan balance	$ 2,286	$ -	$ -

Ending Cash balance	$ 12,600	$ 24,371	$ 48,211

Answer 17

Requirement-2:

Expert Solution

Answer 18

Requirement-2:

Expert Solution

Answer 19

Expert Solution

Answer 20

Explanation of Solution

Explanation: The Cash Budget for July, August and September is prepared as follows:

Cash Budget:	July	August	September

Beginning Cash Balance (A)	$ 12,900	$ 12,600	$ 24,371
Budgeted Cash Receipts (B)	$ 59,680	$ 66,840	$ 74,200
Budgeted Cash payments:
Direct Material	$ 12,480	$ 9,900	$ 10,140
Direct Labor	$ 10,400	$ 8,250	$ 8,450
Factory Overhead	$ 18,720	$ 14,850	$ 15,210
Sales Commission (10% of sales)	$ 6,340	$ 8,060	$ 4,860
Office Salaries	$ 4,600	$ 4,600	$ 4,600
Rent	$ 7,100	$ 7,100	$ 7,100
Interest on loan (1% of beginning loan balance)	$ 26	$ 23	$ -
Total Budgeted Cash Payments (C)	$ 59,666	$ 52,783	$ 50,360
Cash Surplus/(Deficit) (D) =A+B-C =	$ 12,914	$ 26,657	$ 48,211

Beginning Loan balance	$ 2,600	$ 2,286	$ -
Loan Taken (E)		$ -
Loan Paid (F)	$ 314	$ 2,286
Ending Loan balance	$ 2,286	$ -	$ -

Ending Cash balance = D+E-F=	$ 12,600	$ 24,371	$ 48,211