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 2APSA

Requirement-1:

To determine

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

Requirement-1:

Expert Solution

Answer to Problem 2APSA

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

	July	August	September
Budgeted Cash Receipts	$ 57,800	$ 67,200	$ 73,600

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)	$ 64,000	$ 80,000	$ 48,000
Cash Sales (B) = (A*20%)	$ 12,800	$ 16,000	$ 9,600
Credit Sales (C) = (A*80%)	$ 51,200	$ 64,000	$ 38,400
Collection of Sales:
Cash Sales (in the same month)	$ 12,800	$ 16,000	$ 9,600
Credit Sales (in the next month)	$ 45,000	$ 51,200	$ 64,000
Budgeted Cash Receipts	$ 57,800	$ 67,200	$ 73,600

Conclusion

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

	July	August	September
Budgeted Cash Receipts	$ 57,800	$ 67,200	$ 73,600

Requirement-2:

To determine

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

Requirement-2:

Expert Solution

Answer to Problem 2APSA

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

Cash Budget:	July	August	September

Beginning Cash Balance	$ 15,000	$ 15,000	$ 25,505
Budgeted Cash Receipts	$ 57,800	$ 67,200	$ 73,600
Budgeted Cash payments:
Direct Material	$ 16,160	$ 13,440	$ 13,760
Direct Labor	$ 4,040	$ 3,360	$ 3,440
Factory Overhead	$ 20,200	$ 16,800	$ 17,200
Sales Commission	$ 6,400	$ 8,000	$ 4,800
Office Salaries	$ 4,000	$ 4,000	$ 4,000
Rent	$ 6,500	$ 6,500	$ 6,500
Interest on loan	$ 50	$ 46	$ -
Total Budgeted Cash Payments	$ 57,350	$ 52,146	$ 49,700
Cash Surplus/(Deficit)	$ 15,450	$ 30,055	$ 49,405

Beginning Loan balance	$ 5,000	$ 4,550	$ -
Loan Taken		$ -
Loan Paid	$ 450	$ 4,550
Ending Loan balance	$ 4,550	$ -	$ -

Ending Cash balance	$ 15,000	$ 25,505	$ 49,405

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)	$ 15,000	$ 15,000	$ 25,505
Budgeted Cash Receipts (B)	$ 57,800	$ 67,200	$ 73,600
Budgeted Cash payments:
Direct Material	$ 16,160	$ 13,440	$ 13,760
Direct Labor	$ 4,040	$ 3,360	$ 3,440
Factory Overhead	$ 20,200	$ 16,800	$ 17,200
Sales Commission (10% of sales)	$ 6,400	$ 8,000	$ 4,800
Office Salaries	$ 4,000	$ 4,000	$ 4,000
Rent	$ 6,500	$ 6,500	$ 6,500
Interest on loan (1% of beginning loan balance)	$ 50	$ 46	$ -
Total Budgeted Cash Payments (C)	$ 57,350	$ 52,146	$ 49,700
Cash Surplus/(Deficit) (D) =A+B-C =	$ 15,450	$ 30,055	$ 49,405

Beginning Loan balance	$ 5,000	$ 4,550	$ -
Loan Taken (E)		$ -
Loan Paid (F)	$ 450	$ 4,550
Ending Loan balance	$ 4,550	$ -	$ -

Ending Cash balance = D+E-F=	$ 15,000	$ 25,505	$ 49,405

Conclusion

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

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Students have asked these similar questions

Aerotrino produces and sells popular t-shirts. Following is information about its t-shirts for 2014: Selling price $15.00 per t-shirt Variable costs: Production (manufacturing costs) - $3.50 per t-shirt Selling & administration - $1.00 per t-shirt Fixed costs: Production (manufacturing costs) - $1,000,000 per year Selling & administration - $2,000,000 per year During 2014, the company produced 400,000 t-shirts and sold 350,000 of them. Assume that there was no beginning inventory. How much is the net income under variable costing?

ROE?

ANSWER THIS GENERAL ACCOUNTING PROBLEM

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 2APSA

Requirement-1:

To determine

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

Requirement-1:

Expert Solution

Answer to Problem 2APSA

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

	July	August	September
Budgeted Cash Receipts	$ 57,800	$ 67,200	$ 73,600

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)	$ 64,000	$ 80,000	$ 48,000
Cash Sales (B) = (A*20%)	$ 12,800	$ 16,000	$ 9,600
Credit Sales (C) = (A*80%)	$ 51,200	$ 64,000	$ 38,400
Collection of Sales:
Cash Sales (in the same month)	$ 12,800	$ 16,000	$ 9,600
Credit Sales (in the next month)	$ 45,000	$ 51,200	$ 64,000
Budgeted Cash Receipts	$ 57,800	$ 67,200	$ 73,600

Conclusion

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

	July	August	September
Budgeted Cash Receipts	$ 57,800	$ 67,200	$ 73,600

Requirement-2:

To determine

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

Requirement-2:

Expert Solution

Answer to Problem 2APSA

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

Cash Budget:	July	August	September

Beginning Cash Balance	$ 15,000	$ 15,000	$ 25,505
Budgeted Cash Receipts	$ 57,800	$ 67,200	$ 73,600
Budgeted Cash payments:
Direct Material	$ 16,160	$ 13,440	$ 13,760
Direct Labor	$ 4,040	$ 3,360	$ 3,440
Factory Overhead	$ 20,200	$ 16,800	$ 17,200
Sales Commission	$ 6,400	$ 8,000	$ 4,800
Office Salaries	$ 4,000	$ 4,000	$ 4,000
Rent	$ 6,500	$ 6,500	$ 6,500
Interest on loan	$ 50	$ 46	$ -
Total Budgeted Cash Payments	$ 57,350	$ 52,146	$ 49,700
Cash Surplus/(Deficit)	$ 15,450	$ 30,055	$ 49,405

Beginning Loan balance	$ 5,000	$ 4,550	$ -
Loan Taken		$ -
Loan Paid	$ 450	$ 4,550
Ending Loan balance	$ 4,550	$ -	$ -

Ending Cash balance	$ 15,000	$ 25,505	$ 49,405

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)	$ 15,000	$ 15,000	$ 25,505
Budgeted Cash Receipts (B)	$ 57,800	$ 67,200	$ 73,600
Budgeted Cash payments:
Direct Material	$ 16,160	$ 13,440	$ 13,760
Direct Labor	$ 4,040	$ 3,360	$ 3,440
Factory Overhead	$ 20,200	$ 16,800	$ 17,200
Sales Commission (10% of sales)	$ 6,400	$ 8,000	$ 4,800
Office Salaries	$ 4,000	$ 4,000	$ 4,000
Rent	$ 6,500	$ 6,500	$ 6,500
Interest on loan (1% of beginning loan balance)	$ 50	$ 46	$ -
Total Budgeted Cash Payments (C)	$ 57,350	$ 52,146	$ 49,700
Cash Surplus/(Deficit) (D) =A+B-C =	$ 15,450	$ 30,055	$ 49,405

Beginning Loan balance	$ 5,000	$ 4,550	$ -
Loan Taken (E)		$ -
Loan Paid (F)	$ 450	$ 4,550
Ending Loan balance	$ 4,550	$ -	$ -

Ending Cash balance = D+E-F=	$ 15,000	$ 25,505	$ 49,405

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 2APSA

Requirement-1:

To determine

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

Requirement-1:

Expert Solution

Answer to Problem 2APSA

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

	July	August	September
Budgeted Cash Receipts	$ 57,800	$ 67,200	$ 73,600

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)	$ 64,000	$ 80,000	$ 48,000
Cash Sales (B) = (A*20%)	$ 12,800	$ 16,000	$ 9,600
Credit Sales (C) = (A*80%)	$ 51,200	$ 64,000	$ 38,400
Collection of Sales:
Cash Sales (in the same month)	$ 12,800	$ 16,000	$ 9,600
Credit Sales (in the next month)	$ 45,000	$ 51,200	$ 64,000
Budgeted Cash Receipts	$ 57,800	$ 67,200	$ 73,600

Conclusion

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

	July	August	September
Budgeted Cash Receipts	$ 57,800	$ 67,200	$ 73,600

Requirement-2:

To determine

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

Requirement-2:

Expert Solution

Answer to Problem 2APSA

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

Cash Budget:	July	August	September

Beginning Cash Balance	$ 15,000	$ 15,000	$ 25,505
Budgeted Cash Receipts	$ 57,800	$ 67,200	$ 73,600
Budgeted Cash payments:
Direct Material	$ 16,160	$ 13,440	$ 13,760
Direct Labor	$ 4,040	$ 3,360	$ 3,440
Factory Overhead	$ 20,200	$ 16,800	$ 17,200
Sales Commission	$ 6,400	$ 8,000	$ 4,800
Office Salaries	$ 4,000	$ 4,000	$ 4,000
Rent	$ 6,500	$ 6,500	$ 6,500
Interest on loan	$ 50	$ 46	$ -
Total Budgeted Cash Payments	$ 57,350	$ 52,146	$ 49,700
Cash Surplus/(Deficit)	$ 15,450	$ 30,055	$ 49,405

Beginning Loan balance	$ 5,000	$ 4,550	$ -
Loan Taken		$ -
Loan Paid	$ 450	$ 4,550
Ending Loan balance	$ 4,550	$ -	$ -

Ending Cash balance	$ 15,000	$ 25,505	$ 49,405

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)	$ 15,000	$ 15,000	$ 25,505
Budgeted Cash Receipts (B)	$ 57,800	$ 67,200	$ 73,600
Budgeted Cash payments:
Direct Material	$ 16,160	$ 13,440	$ 13,760
Direct Labor	$ 4,040	$ 3,360	$ 3,440
Factory Overhead	$ 20,200	$ 16,800	$ 17,200
Sales Commission (10% of sales)	$ 6,400	$ 8,000	$ 4,800
Office Salaries	$ 4,000	$ 4,000	$ 4,000
Rent	$ 6,500	$ 6,500	$ 6,500
Interest on loan (1% of beginning loan balance)	$ 50	$ 46	$ -
Total Budgeted Cash Payments (C)	$ 57,350	$ 52,146	$ 49,700
Cash Surplus/(Deficit) (D) =A+B-C =	$ 15,450	$ 30,055	$ 49,405

Beginning Loan balance	$ 5,000	$ 4,550	$ -
Loan Taken (E)		$ -
Loan Paid (F)	$ 450	$ 4,550
Ending Loan balance	$ 4,550	$ -	$ -

Ending Cash balance = D+E-F=	$ 15,000	$ 25,505	$ 49,405

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 2APSA

Requirement-1:

To determine

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

Requirement-1:

Expert Solution

Answer to Problem 2APSA

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

	July	August	September
Budgeted Cash Receipts	$ 57,800	$ 67,200	$ 73,600

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)	$ 64,000	$ 80,000	$ 48,000
Cash Sales (B) = (A*20%)	$ 12,800	$ 16,000	$ 9,600
Credit Sales (C) = (A*80%)	$ 51,200	$ 64,000	$ 38,400
Collection of Sales:
Cash Sales (in the same month)	$ 12,800	$ 16,000	$ 9,600
Credit Sales (in the next month)	$ 45,000	$ 51,200	$ 64,000
Budgeted Cash Receipts	$ 57,800	$ 67,200	$ 73,600

Conclusion

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

	July	August	September
Budgeted Cash Receipts	$ 57,800	$ 67,200	$ 73,600

Requirement-2:

To determine

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

Requirement-2:

Expert Solution

Answer to Problem 2APSA

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

Cash Budget:	July	August	September

Beginning Cash Balance	$ 15,000	$ 15,000	$ 25,505
Budgeted Cash Receipts	$ 57,800	$ 67,200	$ 73,600
Budgeted Cash payments:
Direct Material	$ 16,160	$ 13,440	$ 13,760
Direct Labor	$ 4,040	$ 3,360	$ 3,440
Factory Overhead	$ 20,200	$ 16,800	$ 17,200
Sales Commission	$ 6,400	$ 8,000	$ 4,800
Office Salaries	$ 4,000	$ 4,000	$ 4,000
Rent	$ 6,500	$ 6,500	$ 6,500
Interest on loan	$ 50	$ 46	$ -
Total Budgeted Cash Payments	$ 57,350	$ 52,146	$ 49,700
Cash Surplus/(Deficit)	$ 15,450	$ 30,055	$ 49,405

Beginning Loan balance	$ 5,000	$ 4,550	$ -
Loan Taken		$ -
Loan Paid	$ 450	$ 4,550
Ending Loan balance	$ 4,550	$ -	$ -

Ending Cash balance	$ 15,000	$ 25,505	$ 49,405

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)	$ 15,000	$ 15,000	$ 25,505
Budgeted Cash Receipts (B)	$ 57,800	$ 67,200	$ 73,600
Budgeted Cash payments:
Direct Material	$ 16,160	$ 13,440	$ 13,760
Direct Labor	$ 4,040	$ 3,360	$ 3,440
Factory Overhead	$ 20,200	$ 16,800	$ 17,200
Sales Commission (10% of sales)	$ 6,400	$ 8,000	$ 4,800
Office Salaries	$ 4,000	$ 4,000	$ 4,000
Rent	$ 6,500	$ 6,500	$ 6,500
Interest on loan (1% of beginning loan balance)	$ 50	$ 46	$ -
Total Budgeted Cash Payments (C)	$ 57,350	$ 52,146	$ 49,700
Cash Surplus/(Deficit) (D) =A+B-C =	$ 15,450	$ 30,055	$ 49,405

Beginning Loan balance	$ 5,000	$ 4,550	$ -
Loan Taken (E)		$ -
Loan Paid (F)	$ 450	$ 4,550
Ending Loan balance	$ 4,550	$ -	$ -

Ending Cash balance = D+E-F=	$ 15,000	$ 25,505	$ 49,405

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 2APSA

Requirement-1:

To determine

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

Requirement-1:

Expert Solution

Answer to Problem 2APSA

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

	July	August	September
Budgeted Cash Receipts	$ 57,800	$ 67,200	$ 73,600

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)	$ 64,000	$ 80,000	$ 48,000
Cash Sales (B) = (A*20%)	$ 12,800	$ 16,000	$ 9,600
Credit Sales (C) = (A*80%)	$ 51,200	$ 64,000	$ 38,400
Collection of Sales:
Cash Sales (in the same month)	$ 12,800	$ 16,000	$ 9,600
Credit Sales (in the next month)	$ 45,000	$ 51,200	$ 64,000
Budgeted Cash Receipts	$ 57,800	$ 67,200	$ 73,600

Conclusion

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

	July	August	September
Budgeted Cash Receipts	$ 57,800	$ 67,200	$ 73,600

Requirement-2:

To determine

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

Requirement-2:

Expert Solution

Answer to Problem 2APSA

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

Cash Budget:	July	August	September

Beginning Cash Balance	$ 15,000	$ 15,000	$ 25,505
Budgeted Cash Receipts	$ 57,800	$ 67,200	$ 73,600
Budgeted Cash payments:
Direct Material	$ 16,160	$ 13,440	$ 13,760
Direct Labor	$ 4,040	$ 3,360	$ 3,440
Factory Overhead	$ 20,200	$ 16,800	$ 17,200
Sales Commission	$ 6,400	$ 8,000	$ 4,800
Office Salaries	$ 4,000	$ 4,000	$ 4,000
Rent	$ 6,500	$ 6,500	$ 6,500
Interest on loan	$ 50	$ 46	$ -
Total Budgeted Cash Payments	$ 57,350	$ 52,146	$ 49,700
Cash Surplus/(Deficit)	$ 15,450	$ 30,055	$ 49,405

Beginning Loan balance	$ 5,000	$ 4,550	$ -
Loan Taken		$ -
Loan Paid	$ 450	$ 4,550
Ending Loan balance	$ 4,550	$ -	$ -

Ending Cash balance	$ 15,000	$ 25,505	$ 49,405

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)	$ 15,000	$ 15,000	$ 25,505
Budgeted Cash Receipts (B)	$ 57,800	$ 67,200	$ 73,600
Budgeted Cash payments:
Direct Material	$ 16,160	$ 13,440	$ 13,760
Direct Labor	$ 4,040	$ 3,360	$ 3,440
Factory Overhead	$ 20,200	$ 16,800	$ 17,200
Sales Commission (10% of sales)	$ 6,400	$ 8,000	$ 4,800
Office Salaries	$ 4,000	$ 4,000	$ 4,000
Rent	$ 6,500	$ 6,500	$ 6,500
Interest on loan (1% of beginning loan balance)	$ 50	$ 46	$ -
Total Budgeted Cash Payments (C)	$ 57,350	$ 52,146	$ 49,700
Cash Surplus/(Deficit) (D) =A+B-C =	$ 15,450	$ 30,055	$ 49,405

Beginning Loan balance	$ 5,000	$ 4,550	$ -
Loan Taken (E)		$ -
Loan Paid (F)	$ 450	$ 4,550
Ending Loan balance	$ 4,550	$ -	$ -

Ending Cash balance = D+E-F=	$ 15,000	$ 25,505	$ 49,405

Conclusion

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

Answer 6

Chapter 22, Problem 2APSA

Requirement-1:

To determine

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

Requirement-1:

Expert Solution

Answer to Problem 2APSA

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

	July	August	September
Budgeted Cash Receipts	$ 57,800	$ 67,200	$ 73,600

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)	$ 64,000	$ 80,000	$ 48,000
Cash Sales (B) = (A*20%)	$ 12,800	$ 16,000	$ 9,600
Credit Sales (C) = (A*80%)	$ 51,200	$ 64,000	$ 38,400
Collection of Sales:
Cash Sales (in the same month)	$ 12,800	$ 16,000	$ 9,600
Credit Sales (in the next month)	$ 45,000	$ 51,200	$ 64,000
Budgeted Cash Receipts	$ 57,800	$ 67,200	$ 73,600

Conclusion

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

	July	August	September
Budgeted Cash Receipts	$ 57,800	$ 67,200	$ 73,600

Answer 7

Chapter 22, Problem 2APSA

Requirement-1:

To determine

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

Answer 8

Requirement-1:

Expert Solution

Answer to Problem 2APSA

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

	July	August	September
Budgeted Cash Receipts	$ 57,800	$ 67,200	$ 73,600

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)	$ 64,000	$ 80,000	$ 48,000
Cash Sales (B) = (A*20%)	$ 12,800	$ 16,000	$ 9,600
Credit Sales (C) = (A*80%)	$ 51,200	$ 64,000	$ 38,400
Collection of Sales:
Cash Sales (in the same month)	$ 12,800	$ 16,000	$ 9,600
Credit Sales (in the next month)	$ 45,000	$ 51,200	$ 64,000
Budgeted Cash Receipts	$ 57,800	$ 67,200	$ 73,600

Answer 13

Conclusion

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

	July	August	September
Budgeted Cash Receipts	$ 57,800	$ 67,200	$ 73,600

Answer 14

Requirement-2:

To determine

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

Requirement-2:

Expert Solution

Answer to Problem 2APSA

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

Cash Budget:	July	August	September

Beginning Cash Balance	$ 15,000	$ 15,000	$ 25,505
Budgeted Cash Receipts	$ 57,800	$ 67,200	$ 73,600
Budgeted Cash payments:
Direct Material	$ 16,160	$ 13,440	$ 13,760
Direct Labor	$ 4,040	$ 3,360	$ 3,440
Factory Overhead	$ 20,200	$ 16,800	$ 17,200
Sales Commission	$ 6,400	$ 8,000	$ 4,800
Office Salaries	$ 4,000	$ 4,000	$ 4,000
Rent	$ 6,500	$ 6,500	$ 6,500
Interest on loan	$ 50	$ 46	$ -
Total Budgeted Cash Payments	$ 57,350	$ 52,146	$ 49,700
Cash Surplus/(Deficit)	$ 15,450	$ 30,055	$ 49,405

Beginning Loan balance	$ 5,000	$ 4,550	$ -
Loan Taken		$ -
Loan Paid	$ 450	$ 4,550
Ending Loan balance	$ 4,550	$ -	$ -

Ending Cash balance	$ 15,000	$ 25,505	$ 49,405

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)	$ 15,000	$ 15,000	$ 25,505
Budgeted Cash Receipts (B)	$ 57,800	$ 67,200	$ 73,600
Budgeted Cash payments:
Direct Material	$ 16,160	$ 13,440	$ 13,760
Direct Labor	$ 4,040	$ 3,360	$ 3,440
Factory Overhead	$ 20,200	$ 16,800	$ 17,200
Sales Commission (10% of sales)	$ 6,400	$ 8,000	$ 4,800
Office Salaries	$ 4,000	$ 4,000	$ 4,000
Rent	$ 6,500	$ 6,500	$ 6,500
Interest on loan (1% of beginning loan balance)	$ 50	$ 46	$ -
Total Budgeted Cash Payments (C)	$ 57,350	$ 52,146	$ 49,700
Cash Surplus/(Deficit) (D) =A+B-C =	$ 15,450	$ 30,055	$ 49,405

Beginning Loan balance	$ 5,000	$ 4,550	$ -
Loan Taken (E)		$ -
Loan Paid (F)	$ 450	$ 4,550
Ending Loan balance	$ 4,550	$ -	$ -

Ending Cash balance = D+E-F=	$ 15,000	$ 25,505	$ 49,405

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 2APSA

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

Cash Budget:	July	August	September

Beginning Cash Balance	$ 15,000	$ 15,000	$ 25,505
Budgeted Cash Receipts	$ 57,800	$ 67,200	$ 73,600
Budgeted Cash payments:
Direct Material	$ 16,160	$ 13,440	$ 13,760
Direct Labor	$ 4,040	$ 3,360	$ 3,440
Factory Overhead	$ 20,200	$ 16,800	$ 17,200
Sales Commission	$ 6,400	$ 8,000	$ 4,800
Office Salaries	$ 4,000	$ 4,000	$ 4,000
Rent	$ 6,500	$ 6,500	$ 6,500
Interest on loan	$ 50	$ 46	$ -
Total Budgeted Cash Payments	$ 57,350	$ 52,146	$ 49,700
Cash Surplus/(Deficit)	$ 15,450	$ 30,055	$ 49,405

Beginning Loan balance	$ 5,000	$ 4,550	$ -
Loan Taken		$ -
Loan Paid	$ 450	$ 4,550
Ending Loan balance	$ 4,550	$ -	$ -

Ending Cash balance	$ 15,000	$ 25,505	$ 49,405

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)	$ 15,000	$ 15,000	$ 25,505
Budgeted Cash Receipts (B)	$ 57,800	$ 67,200	$ 73,600
Budgeted Cash payments:
Direct Material	$ 16,160	$ 13,440	$ 13,760
Direct Labor	$ 4,040	$ 3,360	$ 3,440
Factory Overhead	$ 20,200	$ 16,800	$ 17,200
Sales Commission (10% of sales)	$ 6,400	$ 8,000	$ 4,800
Office Salaries	$ 4,000	$ 4,000	$ 4,000
Rent	$ 6,500	$ 6,500	$ 6,500
Interest on loan (1% of beginning loan balance)	$ 50	$ 46	$ -
Total Budgeted Cash Payments (C)	$ 57,350	$ 52,146	$ 49,700
Cash Surplus/(Deficit) (D) =A+B-C =	$ 15,450	$ 30,055	$ 49,405

Beginning Loan balance	$ 5,000	$ 4,550	$ -
Loan Taken (E)		$ -
Loan Paid (F)	$ 450	$ 4,550
Ending Loan balance	$ 4,550	$ -	$ -

Ending Cash balance = D+E-F=	$ 15,000	$ 25,505	$ 49,405