Required information [The following information applies to the questions displayed below.] Built-Tight is preparing its master budget. Budgeted sales and cash pryments follow: Budgeted sales July $ 56,000 August $ 72,000 Budgeted cash payments for Direct materials Direct labor Overhead 15,560 3,440 19,600 12,840 2,760 16,200 September $ 56,000 13,160 2,840 16,600 Sales to customers are 20% cash and 80% on credit. Sales in June were $53,500. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $47,000 in cash and $4,400 in loans payable. A minimum cash balance of $47,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $47,000. 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 $47,000 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 ($3,400 per month), and rent ($5,900 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.)
Required information [The following information applies to the questions displayed below.] Built-Tight is preparing its master budget. Budgeted sales and cash pryments follow: Budgeted sales July $ 56,000 August $ 72,000 Budgeted cash payments for Direct materials Direct labor Overhead 15,560 3,440 19,600 12,840 2,760 16,200 September $ 56,000 13,160 2,840 16,600 Sales to customers are 20% cash and 80% on credit. Sales in June were $53,500. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $47,000 in cash and $4,400 in loans payable. A minimum cash balance of $47,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $47,000. 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 $47,000 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 ($3,400 per month), and rent ($5,900 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Denger
![Required information
[The following information applies to the questions displayed below.]
Built-Tight is preparing its master budget. Budgeted sales and cash pryments follow:
Budgeted sales
July
$ 56,000
August
$ 72,000
Budgeted cash payments for
Direct materials
Direct labor
Overhead
15,560
3,440
19,600
12,840
2,760
16,200
September
$ 56,000
13,160
2,840
16,600
Sales to customers are 20% cash and 80% on credit. Sales in June were $53,500. All credit sales are collected in the
month following the sale. The June 30 balance sheet includes balances of $47,000 in cash and $4,400 in loans
payable. A minimum cash balance of $47,000 is required. Loans are obtained at the end of any month when the
preliminary cash balance is below $47,000. 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 $47,000 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
($3,400 per month), and rent ($5,900 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.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F23949d3e-50b2-478c-a26c-00f434d27e15%2F4263b26e-ae29-4906-8957-63ad830c2ee7%2Fbgr3i2n_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 pryments follow:
Budgeted sales
July
$ 56,000
August
$ 72,000
Budgeted cash payments for
Direct materials
Direct labor
Overhead
15,560
3,440
19,600
12,840
2,760
16,200
September
$ 56,000
13,160
2,840
16,600
Sales to customers are 20% cash and 80% on credit. Sales in June were $53,500. All credit sales are collected in the
month following the sale. The June 30 balance sheet includes balances of $47,000 in cash and $4,400 in loans
payable. A minimum cash balance of $47,000 is required. Loans are obtained at the end of any month when the
preliminary cash balance is below $47,000. 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 $47,000 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
($3,400 per month), and rent ($5,900 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.)
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