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Budgeted sales Budgeted cash payments for Direct materials Direct labor Overhead July August September $ 57,000 $ 73,000 $ 55,000 15,760 13,040 13,360 3,648 19,800 2,960 16,400 3,840 16,800 Sales to customers are 20% cash and 80% on credit. Sales in June were $54,500. All credit sales are collecte month following the sale. The June 30 balance sheet includes balances of $43,000 in cash and $4,600 in loa A minimum cash balance of $43,000 is required. Loans are obtained at the end of any month when the preli balance is below $43,000. Interest is 1% per month based on the beginning-of-the-month loan balance and is month-end. Any preliminary cash balance above $43,000 is used to repay loans at month-end. Expenses are month incurred and consist of sales commissions (10% of sales), office salaries ($3,600 per month), and rent ( 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 f whole dollars. BUILT-TIGHT Cash Budget July August September Beginning cash balance $ 43,000 $ 43,000 Add: Cash receipts 55,000 60,200 69,400 Total cash available 98,000 103,200 Less: Cash payments for Direct materials 15,760 13,040 13,360 Direct labor 3,640 2.960 3,040 Sales commissions Office salaries 3,600 3,600 3,600 Rent 6,100 6.100 6,100 Interest on loan Total cash payments 29,100 25,700 26.100 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 0 0 Loan balance July August September

Budgeted sales Budgeted cash payments for Direct materials Direct labor Overhead July August September $ 57,000 $ 73,000 $ 55,000 15,760 13,040 13,360 3,648 19,800 2,960 16,400 3,840 16,800 Sales to customers are 20% cash and 80% on credit. Sales in June were $54,500. All credit sales are collecte month following the sale. The June 30 balance sheet includes balances of $43,000 in cash and $4,600 in loa A minimum cash balance of $43,000 is required. Loans are obtained at the end of any month when the preli balance is below $43,000. Interest is 1% per month based on the beginning-of-the-month loan balance and is month-end. Any preliminary cash balance above $43,000 is used to repay loans at month-end. Expenses are month incurred and consist of sales commissions (10% of sales), office salaries ($3,600 per month), and rent ( 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 f whole dollars. BUILT-TIGHT Cash Budget July August September Beginning cash balance $ 43,000 $ 43,000 Add: Cash receipts 55,000 60,200 69,400 Total cash available 98,000 103,200 Less: Cash payments for Direct materials 15,760 13,040 13,360 Direct labor 3,640 2.960 3,040 Sales commissions Office salaries 3,600 3,600 3,600 Rent 6,100 6.100 6,100 Interest on loan Total cash payments 29,100 25,700 26.100 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 0 0 Loan balance July August September

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 18E
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Budgeted sales Budgeted cash payments for Direct materials Direct labor Overhead July August September $ 57,000 $ 73,000 $ 55,000 15,760 13,040 13,360 3,640 19,800 2,960 3,048 16,800 16,400 Sales to customers are 20% cash and 80% on credit. Sales in June were $54,500. All credit sales are collecte month following the sale. The June 30 balance sheet includes balances of $43,000 in cash and $4,600 in loa A minimum cash balance of $43,000 is required. Loans are obtained at the end of any month when the prelim balance is below $43,000. Interest is 1% per month based on the beginning-of-the-month loan balance and is month-end. Any preliminary cash balance above $43,000 is used to repay loans at month-end. Expenses are month incurred and consist of sales commissions (10% of sales), office salaries ($3,600 per month), and rent ($ 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 fir whole dollars. BUILT-TIGHT Cash Budget July August September Beginning cash balance $ 43,000 $ 43,000 Add: Cash receipts 55,000 60,200 69,400 Total cash available 98,000 103,200 Less: Cash payments for Direct materials 15,760 13,040 13,360 Direct labor 3,640 2,960 3,040 Sales commissions Office salaries 3,600 3,600 3,600 Rent 6,100 6,100 6,100 Interest on loan Total cash payments 29,100 25,700 26.100 Preliminary cash balance Loan activity Additional loan Repayment of loan to bank Ending cash balance 0 0 0 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month Loan balance July August September
Transcribed Image Text:Budgeted sales Budgeted cash payments for Direct materials Direct labor Overhead July August September $ 57,000 $ 73,000 $ 55,000 15,760 13,040 13,360 3,640 19,800 2,960 3,048 16,800 16,400 Sales to customers are 20% cash and 80% on credit. Sales in June were $54,500. All credit sales are collecte month following the sale. The June 30 balance sheet includes balances of $43,000 in cash and $4,600 in loa A minimum cash balance of $43,000 is required. Loans are obtained at the end of any month when the prelim balance is below $43,000. Interest is 1% per month based on the beginning-of-the-month loan balance and is month-end. Any preliminary cash balance above $43,000 is used to repay loans at month-end. Expenses are month incurred and consist of sales commissions (10% of sales), office salaries ($3,600 per month), and rent ($ 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 fir whole dollars. BUILT-TIGHT Cash Budget July August September Beginning cash balance $ 43,000 $ 43,000 Add: Cash receipts 55,000 60,200 69,400 Total cash available 98,000 103,200 Less: Cash payments for Direct materials 15,760 13,040 13,360 Direct labor 3,640 2,960 3,040 Sales commissions Office salaries 3,600 3,600 3,600 Rent 6,100 6,100 6,100 Interest on loan Total cash payments 29,100 25,700 26.100 Preliminary cash balance Loan activity Additional loan Repayment of loan to bank Ending cash balance 0 0 0 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month Loan balance July August September
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