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augeted salv Budgeted sales Budgeted cash payments for Direct materials Direct labor Overhead July $63,400 12,480 10,400 18,720 August $80,600 9,900 8,250 14.850 September $48.600 10,140 8,450 15,210 Sales to customers are 20% cash and 80% on credit. Sales in June were $58,750. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $12,900 in cash and $2,600 in loans payable. A minimum cash balance of $12,600 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $12,600. 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 $12,600 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 ($4,600 per month), and rent ($7,100 per month). 1. Prepare a schedule of cash receipts for the months of July, August, and September. 2. Prepare a cash budget for the months of July, August, and September. Round interest payments to the dollar.

augeted salv Budgeted sales Budgeted cash payments for Direct materials Direct labor Overhead July $63,400 12,480 10,400 18,720 August $80,600 9,900 8,250 14.850 September $48.600 10,140 8,450 15,210 Sales to customers are 20% cash and 80% on credit. Sales in June were $58,750. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $12,900 in cash and $2,600 in loans payable. A minimum cash balance of $12,600 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $12,600. 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 $12,600 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 ($4,600 per month), and rent ($7,100 per month). 1. Prepare a schedule of cash receipts for the months of July, August, and September. 2. Prepare a cash budget for the months of July, August, and September. Round interest payments to the dollar.

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 72P: Cash Budget The controller of Feinberg Company is gathering data to prepare the cash budget for...
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Al Manufacturing is preparing its master budget. Budgeted sales and cash payments follow. July $63,400 Budgeted sales Budgeted cash payments for Direct materials Direct labor Overhead 12,480 10,400 18,720 August $80,600 9,900 8,250 14,850 September $48,600 10,140 8,450 15,210 Sales to customers are 20% cash and 80% on credit. Sales in June were $58,750. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $12,900 in cash and $2,600 in loans payable. A minimum cash balance of $12,600 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $12,600. 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 $12,600 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 ($4,600 per month), and rent ($7,100 per month). 1. Prepare a schedule of cash receipts for the months of July, August, and September. 2. Prepare a cash budget for the months of July, August, and September. Round interest payments to the dollar.
Transcribed Image Text:Al Manufacturing is preparing its master budget. Budgeted sales and cash payments follow. July $63,400 Budgeted sales Budgeted cash payments for Direct materials Direct labor Overhead 12,480 10,400 18,720 August $80,600 9,900 8,250 14,850 September $48,600 10,140 8,450 15,210 Sales to customers are 20% cash and 80% on credit. Sales in June were $58,750. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $12,900 in cash and $2,600 in loans payable. A minimum cash balance of $12,600 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $12,600. 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 $12,600 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 ($4,600 per month), and rent ($7,100 per month). 1. Prepare a schedule of cash receipts for the months of July, August, and September. 2. Prepare a cash budget for the months of July, August, and September. Round interest payments to the dollar.
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