Prepare a cash budget for the months of July, August, and September. (Negative balances and Loan...

    

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Prepare a cash budget for the months of July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Enter your final answers in whole dollars.) Budgeted sales Budgeted cash payments for Direct materials Direct labor Overhead July August September $ 63,500 $ 79,500 $ 48,500 16,260 13,540 13,860 4,140 20,300 3,460 16,900 3,540 17,300 Sales to customers are 25% cash and 75% on credit. Sales in June were $57,000. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $17,000 in cash and $5,100 in loans payable. A minimum cash balance of $17,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $17,000. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. Any preliminary cash balance above $17,000 is used to repay loans at month-end. Expenses are paid in the month incurred and consist of sales commissions (10% of sales), office salaries ($4,100 per month), and rent ($6,600 per month). Beginning cash balance Total cash available Less: Cash payments for Total cash payments Preliminary cash balance Loan activity Additional loan Repayment of loan to bank Ending cash balance BUILT-TIGHT Cash Budget July August September 0 0 0 0 0 0 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month Loan balance July August September Prepare a cash budget for the months of July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Enter your final answers in whole dollars.) Budgeted sales Budgeted cash payments for Direct materials Direct labor Overhead July August September $ 63,500 $ 79,500 $ 48,500 16,260 13,540 13,860 4,140 20,300 3,460 16,900 3,540 17,300 Sales to customers are 25% cash and 75% on credit. Sales in June were $57,000. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $17,000 in cash and $5,100 in loans payable. A minimum cash balance of $17,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $17,000. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. Any preliminary cash balance above $17,000 is used to repay loans at month-end. Expenses are paid in the month incurred and consist of sales commissions (10% of sales), office salaries ($4,100 per month), and rent ($6,600 per month). Beginning cash balance Total cash available Less: Cash payments for Total cash payments Preliminary cash balance Loan activity Additional loan Repayment of loan to bank Ending cash balance BUILT-TIGHT Cash Budget July August September 0 0 0 0 0 0 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month Loan balance July August September