Problem 22-2A (Algo) Manufacturing: Cash budget and schedule of cash payments LO P2 [The following information...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 $ 56,500 August $ 72,500 September $ 55,500 Budgeted cash payments for Direct materials 15,660 12,940 13,260 Direct labor Overhead 3,540 19,700 2,860 16,300 2,940 16,700 Sales to customers are 20% cash and 80% on credit. Sales in June were $54,000. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $45,000 in cash and $4,500 in loans payable. A minimum cash balance of $45,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $45,000. 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 $45,000 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 ($3,500 per month), and rent ($6,000 per month). Problem 22-2A (Algo) Part 1 1. Prepare a schedule of cash receipts for the months of July, August, and September. BUILT-TIGHT Schedule of Cash Receipts from Sales September 72,500 $ 55,500 July August $ 56,500 $ Sales Cash receipts from: Cash sales Collections of prior period sales Total cash receipts $ 0 $ 0 $ 0 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 $ 56,500 August $ 72,500 September $ 55,500 Budgeted cash payments for Direct materials 15,660 12,940 13,260 Direct labor Overhead 3,540 19,700 2,860 16,300 2,940 16,700 Sales to customers are 20% cash and 80% on credit. Sales in June were $54,000. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $45,000 in cash and $4,500 in loans payable. A minimum cash balance of $45,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $45,000. 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 $45,000 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 ($3,500 per month), and rent ($6,000 per month). Problem 22-2A (Algo) Part 1 1. Prepare a schedule of cash receipts for the months of July, August, and September. BUILT-TIGHT Schedule of Cash Receipts from Sales September 72,500 $ 55,500 July August $ 56,500 $ Sales Cash receipts from: Cash sales Collections of prior period sales Total cash receipts $ 0 $ 0 $ 0
Expert Answer:
Answer rating: 100% (QA)
To solve this problem we need to prepare a schedule of cash receipts for the months of July August a... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Lynn Ally, owner of a local Subway shop, loaned $40,000 to Pete Hall to help him open a Subway franchise. Pete plans to repay Lynn at the end of 8 years with 6% interest compounded semiannually. How...
-
The costs of pollution control: a) Are largely borne solely by corporations b) Are largely borne by consumers of the goods and services that cause the pollution, even when they are "paid for" by...
-
Built-Tight is preparing its master budget. Budgeted sales and cash payments follow. Sales to customers are 20% cash and 80% on credit. Sales in June were $56,250. All credit sales are collected in...
-
H. Brown (Portsmouth) Ltd produces a range of central heating systems for sale to builders merchants. As a result of increasing demand for the businesss products, the directors have decided to expand...
-
For each of the following (universes and) pairs of statements, use the Rule of Universal Specification, in conjunction with Modus Ponens and Modus Tollens, in order to fill in the blank line so that...
-
A semiconductor is a key component in your laptop, smartphone, and iPad. The table provides information about the market for semiconductors in the United States. Producers of semiconductors can get...
-
Research on the Internet how many restatements of earnings occurred during 2006.
-
A store maintains data on customers, products and purchase records in three tables: CUSTOMER, PRODUCT, PURCHASE. The store manager wants to know which product is on its maximum discount for each...
-
A deferred tax liability (or asset) is described as the tax effect of the temporary difference between the financial statement carrying amount (book value) of an asset or liability and its tax basis....
-
(5) A fund has been established for the purpose of insuring 11,060 lives with identical mortality profiles. For each life, you are given: The probability of an accidental death is 0.01, and the...
-
1. Grab Holdings Inc. commonly known as Grab, is a Southeast Asian technology company headquartered in Singapore. In addition to transportation, the company offers food delivery and digital payments...
-
1. What is symbolic speech? a. Speech which promotes at least some type of commerce b. Privately expressing ideological beliefs c. Speech that promotes at least some type of symbolism d. Expressive...
-
How do you account under ASPE for a lease which has a fair value purchase option, and does not meet the other criteria for capitalization. However, the equipment is specialized for the lessee, and...
-
Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVS), the Conquistador and Hurricane, from a single manufacturing facility. The manufacturing facility operates at 100%...
-
You are promised $8,000 in 3 years. If you estimate that you can obtain a nominal interest rate of 6% (capitalized monthly) for the next 8 semesters, for what amount are you willing to exchange this...
-
Lauder Company manufactures and distributes various fixtures used primarily in new building construction. At the company's Bayside plant, Lauder produces two models of one widely used fixture...
-
Explain why each of the following is either a private good or a public good: traffic lights, in line skates, a city park, a chicken salad sandwich, a tennis racket, national defense, a coastal...
-
Cranmore Carriage Company offers guided horse-drawn carriage rides through historic Charleston, South Carolina. The carriage business is highly regulated by the city. Cranmore Carriage Company has...
-
Worldwide Travel uses the contribution margin income statement internally. Worldwide's first quarter results are as follows: Worldwide Travel contribution margin Income Statement Three Months Ended...
-
Zippy Scooters plans to sell a motorized standard scooter for $45 and a motorized chrome scooter for $65. Zippy Scooters purchases the standard scooter for $30 and the chrome scooter for $35. Zippy...
-
Laws and penalties for driving under the infl uence (DUI) are extremely strict in many states. Furthermore, the number of motor vehicle accidents involving young drivers has increased and become more...
-
Actuaries determine the costs and risks involved with insuring peoples property. Actuaries are experts in evaluating the like lihood of future events. They design creative ways to reduce the...
-
Comparative financial statements for the Rahul Corporation for the year ended December 31 are given below. A total of 500,000 shares of stock were outstanding. The market value of the company's stock...
Study smarter with the SolutionInn App