just zoom in and it is good Homework 0 Help Save & E Required information The fo
ID: 2510328 • Letter: J
Question
just zoom in and it is good
Homework 0 Help Save & E Required information The following information applies to the questions displayed below Built-Tight is preparing its master budget for the quarter ended September 30, 2017. Budgeted sales and cash payments for product costs for the quarter follow 540 13.860 Fsetory overhead 20,300 16,90017,100 Sales are 25% cash and 75% on credit. All credit sales are collected inthe month following the sale. The June 30 balance sheet includes balances of $15,000 in cash; $45,100 in accounts receivable: $4,600 in accounts payable; 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 begining-of-themonth loan balance and is pid 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 saest office salaries ($4100 per month, and rent $6,600 per month) (2) Prepare a cash budget for each of the months of July, August, and September (Negative balances and Loan repayment amounts lif anyl should be indicated with minus sign. Enter your final answers ih whole dollars.) Prev2 Next 4 MacBook Air rsExplanation / Answer
Solution:
CASH BUDGET
[(63500*25%)+45100]
60,975
[(79500*25%)+(63500*75%)]
67,500
[(48,500*25%)+(79500*75%)]
71,750
[5100*1%]
51
[(5100-3174)*1%]
19
Particulars July ($) August ($) September ($) Beginning Cash balance 15,000 15,000 28,005 Cash receipts(cash sales+ Cash collection)[(63500*25%)+45100]
60,975
[(79500*25%)+(63500*75%)]
67,500
[(48,500*25%)+(79500*75%)]
71,750
Total cash available 75,975 82,500 99,755 Cash payments for: Cash payment for materials 16,260 13,540 13,860 Cash payment for labor 4,140 3,460 3,540 Cash payment for factory overhead 20,300 16,900 17,300 Sales commission (10% of sales) 6,350 7,950 4,850 Office salaries 4,100 4,100 4,100 Rent 6,600 6,600 6,600 Interest on bank loan[5100*1%]
51
[(5100-3174)*1%]
19
0 Total cash payments 57,801 52,569 50,250 Preliminary cash balance 18,174 29,931 49,505 Repayment of loan to bank (3,174) (1,926) 0 Ending cash balance 15,000 28,005 49,505Related Questions
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