Built-Tight is preparing its master budget. Budgeted sales and cash payments follow: ...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Built-Tight is preparing its master budget. Budgeted sales and cash payments follow:
July
August
September
Budgeted sales
$ 57,500
$ 73,500
$ 54,500
Budgeted cash payments for
Direct materials
15,860
13,140
13,460
Direct labor
3,740
3,060
3,140
Overhead
19,900
16,500
16,900
Sales to customers are 20% cash and 80% on credit. Sales in June were $55,000. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $41,000 in cash and $4,700 in loans payable. A minimum cash balance of $41,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $41,000. 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 $41,000 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 ($3,700 per month), and rent ($6,200 per month).
2. Prepare a cash budget for the months of July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Enter your final answers in whole dollars.)
Show transcribed data
Expert Answer
This solution was written by a subject matter expert. It's designed to help students like you learn core concepts.
Anonymous answered this3,647 answers
Was this answer helpful?
1
1
Post a question
Your toughest questions, solved step-by-step.
Post a question text
12 days left to ask 7 more questionsContinue to post
Questions viewed by other students
Q:
Built-Tight is preparing its master budget. Budgeted sales andcash payments follow: JulyAugustSeptemberBudgeted sales$ 57,500$ 73,500$ 54,500Budgeted cash payments for Direct materials15,86013,14013,460Direct labor3,7403,0603,140Overhead19,90016,50016,900 Sales to customers are 20% cash and 80% on credit. Sales in Junewere $55,000. All credit sales are collected in the month followingthe sale. The June 30 balance sheet includes balances of $41...
A:See answer
Q:
Built-Tight is preparing its master budget for the quarter endedSeptember 30, 2015. Budgeted sales and cash payments for productcosts for the quarter follow: JulyAugustSeptember Budgeted sales$64,000 $80,000 $48,000 Budgeted cashpayments for 16,160 13,440 13,760 Directmaterials Direct labor 4,040 3,360 3,440 Factory overhead 20,200 16,800 17,200 Sales are 20% cash and 80% on credit. All credit sales ...
A:Step-by-step answer
Show more
Could you please show me the work how to get these numbers, I am very confused.