5 ! Part 1 of 2 3.75 points Required information Problem 22-2A (Algo) Manufacturing: Cash budget and schedule of cash payments LO P2 [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 $ 63,000 August $ 79,000 September $ 49,000 eBook Budgeted cash payments for Direct materials Print Direct labor Overhead 16,360 4,240 20,400 13,640 3,560 17,000 13,960 3,640 17,400 References Sales to customers are 25% cash and 75% on credit. Sales in June were $57,500. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $19,000 in cash and $5,200 in loans payable. A minimum cash balance of $19,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $19,000. 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 $19,000 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 ($4,200 per month), and rent ($6,700 per month). Problem 22-2A (Algo) Part 1 1. Prepare a schedule of cash receipts for the months of July, August, and September. Sales Cash receipts from: Total cash receipts BUILT-TIGHT Schedule of Cash Receipts from Sales July August September $ 63,000 $ 79,000 $ 49,000 6 ! Part 2 of 2 3.75 points Required information Problem 22-2A (Algo) Manufacturing: Cash budget and schedule of cash payments LO P2 [The following information applies to the questions displayed below.) Built-Tight is preparing its master budget. Budgeted sales and cash payments follow. July Budgeted sales $ 63,000 August $ 79,000 September $ 49,000 eBook Budgeted cash payments for Direct materials Print Direct labor Overhead 16,360 4,240 20,400 13,640 3,560 17,000 13,960 3,640 17,400 References Sales to customers are 25% cash and 75% on credit. Sales in June were $57,500. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $19,000 in cash and $5,200 in loans payable. A minimum cash balance of $19,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $19,000. 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 $19,000 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 ($4,200 per month), and rent ($6,700 per month). Problem 22-2A (Algo) Part 2 2. Prepare a cash budget for the months of July, August, and September. Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Enter your final answers in whole dollars. Beginning cash balance Total cash available Less: Cash payments for Total cash payments Preliminary cash balance BUILT-TIGHT Cash Budget July August September Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month Loan balance July August September