Asked on 26 May 2020

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: July August September Budgeted sales $ 61,000 $ 77,000 $ 51,000 Budgeted cash payments for Direct materials 16,760 14,040 14,360 Direct labor 4,640 3,960 4,040 Factory overhead 20,800 17,400 17,800 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; 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 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 ($4,600 per month), and rent ($7,100 per month). rev: 03_17_2020_QC_CS-204679 (1) Prepare a cash receipts budget for July, August, and September.

Answered on 26 May 2020

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