1. Prepare a schedule of cash receipts for the months of July, August, and September.
1. Prepare a schedule of cash receipts for the months of July, August, and September.
Chapter4: Financial Planning And Forecasting
Section: Chapter Questions
Problem 4P
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Built-Tight is preparing its master budget. Budgeted sales and cash payments follow.
Budgeted sales
Budgeted cash payments for
Direct materials
Direct labor
Overhead
Sales
Cash receipts from
July
$ 57,500
Total cash receipts
15,860
3,740
19,900
Sales to customers are 20% cash and 80% on credit. Sales in June were $55,000. All credit sales are collected in the
month following the sale. The June 30 balance sheet includes balances of $41,000 in cash and $4,700 in loans payable. A
minimum cash balance of $41,000 is required. Loans are obtained at the end of any month when the preliminary cash
balance is below $41,000. 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 $41,000 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 ($3,700 per month), and rent ($6,200 per
month).
BUILT-TIGHT
Schedule of Cash Receipts from Sales
July
$
August
$ 73,500
1. Prepare a schedule of cash receipts for the months of July, August, and September.
13,140
3,060
16,500
0 $
September
$ 54,500
August September
$ 57,500 $ 73,500 $ 54,500
0$
13,460
3,140
16,900
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feac9e6be-c006-4624-a468-080c17074a87%2Fe6fc5251-09bc-4f63-9a85-68708277cb90%2F8t9nx2l_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
Sales
Cash receipts from
July
$ 57,500
Total cash receipts
15,860
3,740
19,900
Sales to customers are 20% cash and 80% on credit. Sales in June were $55,000. All credit sales are collected in the
month following the sale. The June 30 balance sheet includes balances of $41,000 in cash and $4,700 in loans payable. A
minimum cash balance of $41,000 is required. Loans are obtained at the end of any month when the preliminary cash
balance is below $41,000. 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 $41,000 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 ($3,700 per month), and rent ($6,200 per
month).
BUILT-TIGHT
Schedule of Cash Receipts from Sales
July
$
August
$ 73,500
1. Prepare a schedule of cash receipts for the months of July, August, and September.
13,140
3,060
16,500
0 $
September
$ 54,500
August September
$ 57,500 $ 73,500 $ 54,500
0$
13,460
3,140
16,900
0
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