[The following information applies to the questions displayed below.] 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 $ 54,000 15,160 3,040 19,200 $ 70,000 12,440 2,360 15,800 September $ 58,000 12,760 2,448 16,200 Sales to customers are 15% cash and 85% on credit. Sales in June were $51,500. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $55,000 in cash and $4,000 in loans payable. A minimum cash balance of $55,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $55.000. 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 $55.000 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 ($3,000 per month), and rent ($5,500 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.)
[The following information applies to the questions displayed below.] 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 $ 54,000 15,160 3,040 19,200 $ 70,000 12,440 2,360 15,800 September $ 58,000 12,760 2,448 16,200 Sales to customers are 15% cash and 85% on credit. Sales in June were $51,500. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $55,000 in cash and $4,000 in loans payable. A minimum cash balance of $55,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $55.000. 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 $55.000 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 ($3,000 per month), and rent ($5,500 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.)
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 7E: Starburst Inc. has the following items and amounts as part of its master budget at the 10,000-unit...
Related questions
Question
Please help me
![Required Information
[The following information applies to the questions displayed below.]
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
$ 54,000
15,160
3,040
19,200
August
$ 70,000
12,440
2,360
15,800
September
$ 58,000
12,760
2,440
16,200
Sales to customers are 15% cash and 85% on credit. Sales in June were $51,500. All credit sales are collected in the
month following the sale. The June 30 balance sheet includes balances of $55,000 in cash and $4,000 in loans payable.
A minimum cash balance of $55,000 is required. Loans are obtained at the end of any month when the preliminary cash
balance is below $55,000. 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 $55.000 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 ($3,000 per month), and rent ($5,500 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%2Ffe9e6d95-db01-4bc9-88bc-e685094dece8%2Fa7dc0be3-a82b-4f28-bbe1-77b5cb574c9b%2Fzmoaat6_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 payments follow.
Budgeted sales
Budgeted cash payments for
Direct materials
Direct labor
Overhead
July
$ 54,000
15,160
3,040
19,200
August
$ 70,000
12,440
2,360
15,800
September
$ 58,000
12,760
2,440
16,200
Sales to customers are 15% cash and 85% on credit. Sales in June were $51,500. All credit sales are collected in the
month following the sale. The June 30 balance sheet includes balances of $55,000 in cash and $4,000 in loans payable.
A minimum cash balance of $55,000 is required. Loans are obtained at the end of any month when the preliminary cash
balance is below $55,000. 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 $55.000 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 ($3,000 per month), and rent ($5,500 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.)
Transcribed Image Text:Required information
Beginning cash balance
Total cash available
Less: Cash payments for
Total cash payments
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
July
Loan balance
July
August
August
0
0
September
September
0
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning