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CASH BUDGETS 40 HMK PTS DUE 12/08 Required information Problem 7-2A Manufacturing: Cash budget LO P2 The following information applies to the questions displayed below.j 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 $61,000 $77,000 51,000 Budgeted sales Budgeted cash payments for Direct materials Direct labor Factory overhead 16,760 14,040 4,640 3,960 28,888 17,408 14,360 4,040 17,808 Sales are 30% cash and 70% 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; $45,600 in accounts receivable; $5,100 in accounts payable; and a $5,600 balance in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end of any month when cash shortage occurs. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. tf 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 ($4,600 per month, and rent $7100 per month). 2) Prepare a cash budget or each ofthe norths of July. August, and September. (Negative balances and Loan if any) should be indicated with minus sign. Enter your final answers in whole dollers.) Problem 7-2A Part 1 (1) Prepare a cash receipts budget for July, August, and September BUILT-TIGHT Cash Budget For July, August, and September Cash Receipts Budget For July, August, and September July August Scptcmber Beginning cash balance $ 15,000S 15,000 August $ 61,000 77,000 S 51,000 July receipts trom customers Total cash availatle Less: ending accounts receivable Cash receipts from: Cash payments for: sales 61,000 77,000 51,000Cirect materials s of prior month's receivables Cirect labor Total cash receipts 61,000 77,000 S 51,000Cverread Cffice salaries Rent Total cash payments Preiminary cash balance al loan (can repayment) Endng cash balance Loan balance July August September Loan baance Beginring of month Addtional loan (ican repayment) Loan baance End ofmonth

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