Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Built-Tight is preparing its master budget. Budgeted sales and cash payments follow: July August September Budgeted sales $ 56,000 $ 72,000 $ 56,000 Budgeted cash

Built-Tight is preparing its master budget. Budgeted sales and cash payments follow:

July August September
Budgeted sales $ 56,000 $ 72,000 $ 56,000
Budgeted cash payments for
Direct materials 15,560 12,840 13,160
Direct labor 3,440 2,760 2,840
Overhead 19,600 16,200 16,600

Sales to customers are 20% cash and 80% on credit. Sales in June were $53,500. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $47,000 in cash and $4,400 in loans payable. A minimum cash balance of $47,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $47,000. 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 $47,000 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 ($3,400 per month), and rent ($5,900 per month).

1. Prepare a schedule of cash receipts for the months of July, August, and September

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quality Management Audits In Nuclear Medicine Practices IAEA Human Health Series No 33

Authors: International Atomic Energy Agency

2nd Edition

9201017154, 978-9201017154

More Books

Students also viewed these Accounting questions

Question

2. DO change any clerical or calculation errors.

Answered: 1 week ago

Question

State the uses of job description.

Answered: 1 week ago

Question

Explain in detail the different methods of performance appraisal .

Answered: 1 week ago