[The following information applies to the questions displayed below.] Built-Tight is preparing its master budget. Budgeted sales and cash payments follow: Budgeted sales July $ 55,000 August $ 71,000 Budgeted cash payments for Direct materials Direct labor Overhead 15,360 3,240 19,400 12,640 2,560 16,000 September $ 57,000 12,960 2,640 16,400 Sales to customers are 20% cash and 80% on credit. Sales in June were $52,500. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $51,000 in cash and $4,200 in loans payable. A minimum cash balance of $51,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $51,000. 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 $51,000 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 ($3,200 per month), and rent ($5,700 per month). 1. Prepare a schedule of cash receipts for the months of July, August, and September. Sales Cash receipts from: BUILT-TIGHT Schedule of Cash Receipts from Sales July August September $ 55,000 $ 71,000 $ 57,000 Total cash receipts $ 0 $ 0 $ 0
[The following information applies to the questions displayed below.] Built-Tight is preparing its master budget. Budgeted sales and cash payments follow: Budgeted sales July $ 55,000 August $ 71,000 Budgeted cash payments for Direct materials Direct labor Overhead 15,360 3,240 19,400 12,640 2,560 16,000 September $ 57,000 12,960 2,640 16,400 Sales to customers are 20% cash and 80% on credit. Sales in June were $52,500. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $51,000 in cash and $4,200 in loans payable. A minimum cash balance of $51,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $51,000. 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 $51,000 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 ($3,200 per month), and rent ($5,700 per month). 1. Prepare a schedule of cash receipts for the months of July, August, and September. Sales Cash receipts from: BUILT-TIGHT Schedule of Cash Receipts from Sales July August September $ 55,000 $ 71,000 $ 57,000 Total cash receipts $ 0 $ 0 $ 0
Chapter4: Financial Planning And Forecasting
Section: Chapter Questions
Problem 4P
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