Problem 22-2A Manufacturing: Cash budget LO P2

Problem 22-2A Manufacturing: Cash budget LO P2 [The following information applies to the questions displayed below.] Built-Tight is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for product costs for the quarter follow. July August $63,500 $79,500 September $ 48,500 Budgeted sales Budgeted cash payments for Direct materials Direct labor Factory overhead 16,260 4,140 20,300 13,540 3,460 16,900 13,860 3,540 17,300 Sales are 25% cash and 75% 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; $45,100 in accounts receivable; and a $5,100 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 ($4,100 per month), and rent ($6,600 per month). Problem 22-2A Part 2 2. 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. Enter your final answers in whole dollars.) Problem 22-2A Part 1 1. Prepare a cash receipts budget for July, August, and September. BUILT-TIGHT Cash Receipts Budget For July, August, and September July August September Sales $ $ 79,500 $ 63,500 47,625 48,500 36,375 59,625 Less: ending accounts receivable Cash receipts from: 19,875 12,125 Cash sales Collections of prior month's receivables Total cash receipts 15,875 45,100 60,975 $ $ 19,875 $ 12,125 Problem 22-2A Part 2 2. 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. Enter your final answers in whole dollars.) BUILT-TIGHT Cash Budget For July, August, and September July August Beginning cash balance $ 15,000 Cash receipts from customers September Total cash available Cash payments for: 0 0 0 Total cash payments Preliminary cash balance Additional loan from bank Repayment of loan to bank Ending cash balance 0 0 0 Loan balance July August September Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month