Answered step by step
Verified Expert Solution
Question
1 Approved Answer
! Required information [ The following information applies to the questions displayed below. ] Built - Tight is preparing its master budget. Budgeted sales and
Required information
The following information applies to the questions displayed below.
BuiltTight is preparing its master budget. Budgeted sales and cash payments follow:
Sales to customers are cash and on credit. Sales in June were $ All credit sales are collected in the
month following the sale. The June balance sheet includes balances of $ in cash and $ in loans payable.
A minimum cash balance of $ is required. Loans are obtained at the end of any month when the preliminary cash
balance is below $ Interest is per month based on the beginningofthemonth loan balance and is paid at each
monthend. Any preliminary cash balance above $ is used to repay loans at monthend. Expenses are paid in the
month incurred and consist of sales commissions of sales office salaries $ per month and rent $ per
month
Prepare a cash budget for the months of July, August, and September.
Note: Negative balances and Loan repayment amounts if any should be indicated with minus sign. Enter your final answers in
whole dollars. tableBUILTTIGHTCash BudgetJuly,August,SeptemberBeginning cash balance,Add: Cash receipts,Total cash available,Less: Cash payments forDirect materials,Direct labor,OverheadSales commissions,Office salaries,RentInterest on loan,Total cash payments,Preliminary cash balance,Loan activityAdditional loan,Repayment of loan to bankEnding cash balance,Loan balanceJuly,August,September
Prev
of tableLoan balanceLoan balance Beginning of month,July,August,September$$Additional loan loan repaymentLoan balance End of month,$
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started