Required information (The following information applies to the questions displayed below.] 2. Prepare a cash budget for the months of July, August, and September. (Negative balances an Loan repayment amounts (if any) should be indicated with minus sign. Enter your final answe whole dollars.) Built-Tight is preparing its master budget. Budgeted sales and cash payments follow: BUILT-TIGHT Cash Budget July July $ 57,500 August $ 73,500 September $ 54,500 August September Beginning cash balance Budgeted sales Budgeted cash payments for Direct materials Direct labor Overhead 15,860 3,740 19,900 13,140 3,060 16,500 13,460 3,140 16,900 Total cash available Less: Cash payments for 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). 0 0 0 0 Total cash payments Preliminary cash balance Loan activity Additional loan Repayment of loan to bank Ending cash balance 1. Prepare a schedule of cash receipts for the months of July, August, and September. 0 0 0 BUILT-TIGHT Schedule of Cash Receipts from Sales July August September $ 57,500 $ 73,500 $ 54,500 Loan balance Sales Cash receipts from: Total cash receipts $ 0 $ 0 $ 0 July August September Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month Phoenix Company reports the following fixed budget. It is based on an expected production and sales volume of 15,300 units. PHOENIX COMPANY Fixed Budget For Year Ended December 31 Sales $ 3,213,000 Costs 994,5ee 229,500 76, See Direct materials Direct labor Sales staff commissions Depreciation-Machinery Supervisory salaries Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation Office equipment Income 305,00 203, eee 244,888 253,000 520,920 193, eee $ 192,780 Required: 1&2. Prepare flexible budgets at sales volumes of 14,300 and 16,300 units. 3. The company's business conditions are improving. One possible result is a sales volume of 18,300 units. Prepare a simple budgeted income statement if 18,300 units are sold. Prepare flexible budgets at sales volumes of 14,300 and 16,300 units. PHOENIX COMPANY Flexible Budgets For Year Ended December 31 Flexible Budget Variable Amount Total Fixed Cost Flexible Budget for: Units Sales Unit Sales of of 14,300 16,300 per Unit Variable costs Fixed costs Reg 1 and 2 Req3 > The company's business conditions are improving. One possible result is a sales volume of 18,300 units. Prepare a simple budgeted income statement if 18,300 units are sold. PHOENIX COMPANY Budgeted Income Statement For Year Ended December 31 Sales (in units) 18,300 Phoenix Company reports the following actual results. Actual sales were 18,300 units. Sales (18,300 units) Costs Direct materials Direct labor Sales staff commissions Depreciation-Machinery Supervisory salaries Shipping Sales staff salaries (fixed annual amount) Administrative salaries Depreciation-office equipment Income $ 3,888,750 $ 1,204,140 281,820 82,350 305,000 218,000 284,565 271,000 526,920 193,000 521,955 Income ,521 Required: Prepare a flexible budget performance report for the year. (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "No variance" and enter "O" for zero variance.) PHOENIX COMPANY Flexible Budget Performance Report Flexible Budget (18,300 Actual Results units) (18,300 units) For Year Ended December 31 Variances Favorable/Unfavorable Variable costs 0 0 Fixed costs 0