Accounting problem 7-2A

Snap-Tight is preparing its master budget for the quarter ended September 30, 2017. Budgeted sales and cash payments Ifor product costs for the quarter follow: July $64,000 August $80,000 September $48,000 Budgeted sales Budgeted cash payments for Direct materials Direct labor Factory overhead 16,160 4,040 20,200 13,440 3,360 16,800 13,760 3,440 17,200 Sales are 20% cash and 80% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $15,000 in cash; $45,000 in accounts receivable; and a $5,000 balance in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end of any month when a cash shortage occurs. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. If an excess balance of cash exists, loans are repaid at the end of the month. Operating 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). Required: Prepare a cash receipts budget for July, August, and September. When the calculations for total cash receipts for July, August and September are correct, the cells will change to yellow. Septembe SNAP-TIGHT Cash Receipts Budget For July, August, and September July August Sales Less: ending accounts receivable Cash receipts from: Cash sales Collections of prior month's receivables Total cash receipts Prepare a cash budget for each of the months of July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. For interest calculations, round your answers to the nearest whole dollar amount.) When the calculations for the ending cash balance for July, August, and September are correct, the cells will change to yellow. Prepare a cash budget for each of the months of July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. For interest calculations, round your answers to the nearest whole dollar amount.) When the calculations for the ending cash balance for July, August, and September are correct, the cells will change to yellow. August September SNAP-TIGHT Cash Budget For July, August, and September July Beginning cash balance Cash receipts from customers Total cash available Cash payments for: Direct materials Direct labor Overhead Sales commissions Office salaries Rent Interest on bank loan Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance When the calculation for the ending loan balance is correct, the cell(s) will change to yellow. If there is not any loan activity or if the loan balance is $0, then leave the cells blank. Loan balance July August September Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month