Problem 22-2A Manufacturing: Cash budget and schedule of cash payments P2 Built-Tight is preparing its master budget. Budgeted sales and cash payments follow. Budgeted sales Budgeted cash payments for Direct materials Direct labor Overhead July $64,000 16,160 4,040 20,200 August $80,000 13,440 3,360 16,800 September $48,000 13,760 3,440 17,200 Sales to customers are 20% cash and 80% on credit. Sales in June were $56,250. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $15,000 in cash and $5,000 in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $15,000. 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 $15,000 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 ($4,000 per month), and rent ($6,500 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 payment s to the dollar.
Problem 22-2A Manufacturing: Cash budget and schedule of cash payments P2 Built-Tight is preparing its master budget. Budgeted sales and cash payments follow. Budgeted sales Budgeted cash payments for Direct materials Direct labor Overhead July $64,000 16,160 4,040 20,200 August $80,000 13,440 3,360 16,800 September $48,000 13,760 3,440 17,200 Sales to customers are 20% cash and 80% on credit. Sales in June were $56,250. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $15,000 in cash and $5,000 in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $15,000. 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 $15,000 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 ($4,000 per month), and rent ($6,500 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 payment s to the dollar.
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter21: Cash Budgeting (cashbud)
Section: Chapter Questions
Problem 2R: Open the file CASHBUD from the website for this book at cengagebrain.com. Enter the eight formulas...
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Problem 22-2A
Manufacturing: Cash budget and schedule of cash payments
M
JUN
30
June 30, 2022 at 2:12:32 PM
3,466 of 3,466
Built-Tight is preparing its master budget. Budgeted sales and cash payments follow.
Budgeted sales
Budgeted cash payments for
Direct materials
Direct labor
Overhead
July
$64,000
16,160
4,040
20,200
August
$80,000
JTS
13,440
3,360
16.800
•●●
40
September
$48,000
<
Sales to customers are 20% cash and 80% on credit. Sales in June were $56,250. All credit sales are
collected in the month following the sale. The June 30 balance sheet includes balances of $15,000 in cash
and $5,000 in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end
of any month when the preliminary cash balance is below $15,000. 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
$15,000 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 ($4,000 per month), and rent ($6,500 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 payment s to the
dollar.
tv A
13,760
3,440
17,200
W
Thu Jun 30 2:19 PM
Edit
DOCX
+
Items
Shot
6.10 AM
Shot
5.23 AM
]
hot
.52 AM
y Study
sion
.5
Shot
7.23 PM](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1fc4a9d7-1bfa-4991-9009-17686760ba6a%2Ffabe92df-861e-4438-a7cd-bae2fb962f48%2Fepexxyj_processed.png&w=3840&q=75)
Transcribed Image Text:Photos File Edit Image View
Photos
Library
Memories
People
& Places
>
Recents
Imports
Albums
Media Types
> Shared Albums
> Ō My Albums
Projects
My Projects
Library
000
Window Help
P2
+
Problem 22-2A
Manufacturing: Cash budget and schedule of cash payments
M
JUN
30
June 30, 2022 at 2:12:32 PM
3,466 of 3,466
Built-Tight is preparing its master budget. Budgeted sales and cash payments follow.
Budgeted sales
Budgeted cash payments for
Direct materials
Direct labor
Overhead
July
$64,000
16,160
4,040
20,200
August
$80,000
JTS
13,440
3,360
16.800
•●●
40
September
$48,000
<
Sales to customers are 20% cash and 80% on credit. Sales in June were $56,250. All credit sales are
collected in the month following the sale. The June 30 balance sheet includes balances of $15,000 in cash
and $5,000 in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end
of any month when the preliminary cash balance is below $15,000. 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
$15,000 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 ($4,000 per month), and rent ($6,500 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 payment s to the
dollar.
tv A
13,760
3,440
17,200
W
Thu Jun 30 2:19 PM
Edit
DOCX
+
Items
Shot
6.10 AM
Shot
5.23 AM
]
hot
.52 AM
y Study
sion
.5
Shot
7.23 PM
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