Required information (The following information applies to the questions display

Question

Required information (The following information applies to the questions displayed below] Part 1 of 2 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 July August September $56,000 $72,000 $56,000 Budgeted sales Budgeted cash payments for Direct materials 15,560 12,840 13,160 Direct labor 3,440 2,7602,840 Factory overhead 19,600 16,200 16, 600 Sales are 20% cash and 80% 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: $44.400 in accounts receivable; $3,900 in accounts payable: and a $4,400 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 t 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 ($3,400 per month), and rent ($5,900 per month). (1) Prepare a cash receipts budget for July, August, and September Cash Receipts Budget For July, August, and September July August Septemb Less: ending accounts receivable Cash receipts from Total cash receipts

Explanation / Answer

Cash receipt budget :

July August september Cash sales 11200 14400 11200 Collection from customer From credit sales 44400 44800 57600 Total cash receipt 55600 59200 68800

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