Master Budget Ext... Saved Help Save & Exit Submit work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question Required information Problem 20-2A (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 $ 55,500 August $ 71,500 September $ 56,500 Budgeted cash payments for Direct materials 15,460 12,740 13,060 Direct labor 3,340 2,660 2,740 Overhead 19,500 16,100 16,500 Sales to customers are 20% cash and 80% on credit. Sales in June were $53,000. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $49,000 in cash and $4,300 in loans payable. A minimum cash balance of $49,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $49,000. 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 $49,000 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 ($3,300 per month), and rent ($5,800 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.) < Prev Answer is not complete. Next > work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Required information Answer is not complete. BUILT-TIGHT Return to question Cash Budget July August September Beginning cash balance $ 49,000 69,500 S 83,800 Add: Cash receipts 55,500 68,300x 56,500 Total cash available 104,500 137,800 140,300 Less: Cash payments for Direct materials 15,460 12,740 13,060 Direct labor 3,340 2,660 2,740 Overhead 19,500 16,100 16,500 Sales commissions Office salaries Rent 5,550 7,150 5,650 3,300 3,300 3,300 5,800 5,800 5,800 Interest on loan 0 49,000 49,000 x Total cash payments 52,950 96,750 96,050 Preliminary cash balance 66,200 106,300 108,000 Loan activity Additional loan Repayment of loan to bank Ending cash balance 0 695X 838 0 57,300 x 59,000 66,200 49,695 49,838 Loan balance July August September Loan balance - Beginning of month Additional loan (loan repayment) $ 0 $ 0 49,838 Loan balance - End of month $ 0 0 49.838 S < Prev 2 of 6 Next >