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ions 1 Saved [Ine following information applies to the questions displayed below.) Built-Tight is preparing its master budget. Budgeted sales and cash payments follow:

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ions 1 Saved [Ine following information applies to the questions displayed below.) Built-Tight is preparing its master budget. Budgeted sales and cash payments follow: Budgeted sales July $ 57,500 August $ 73,500 Budgeted cash payments for Direct materials 13,140 Direct labor Overhead. 3,060 16,500 September $ 54,500 15,860 3,740 19,900 13,460 3,140 16,900 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). Problem 20-2A (Algo) Part 2 2. Prepare a cash budget for the months of July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Enter your final answers in whole dollars.) BUILT-TIGHT Cash Budget Beginning cash balance $ July 41,000 $ August 41,000 $ September 4,700 Add: Cash receipts 55,500 60,700 Total cash available 96,500 101,700 Less: Cash payments for Direct materials 15,860 13,140 13,460 9 Pray R f7 Next >

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