- B July 64 000 C August 80 000 D September 48 000 A 1 2 Budgeted Sales 3 Budgeted Cash Payments For 4 Direct Materials 1 (13.73 KiB) Viewed 32 times
quarter that ended September 30. Budgeted sales and cash payments
for product costs for the quarter follow.
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; $45,000
in accounts receivable; $4,500 in accounts payable; and a $5,000
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
($4,000 per month), and rent ($6,500 per
month).
Explain Cash Budget Of Built-Tight
Prepare a cash budget for each of the
months of July, August, and September. (Round amounts to the
dollar.)
Explain the Calculations in Detail and Include the
Conclusion.
B July $64,000 C August $80,000 D September $48,000 A 1 2 Budgeted sales 3 Budgeted cash payments for 4 Direct materials 5 Direct labor 6 Factory overhead 16,160 4,040 20,200 13,440 3,360 16,800 13,760 3,440 17,200