Built-Tight is preparing its master budget. Budgeted sales and cash payments follow: Budgeted sales July $...

  

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Built-Tight is preparing its master budget. Budgeted sales and cash payments follow: Budgeted sales July $ 58,500 August $ 74,500 Budgeted cash payments for Direct materials 16,060 13,340 Direct labor Overhead 3,940 20,100 3,260 16,700 September $ 53,500 13,660 3,340 17,100 Sales to customers are 25% cash and 75% on credit. Sales in June were $56,000. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $37,000 in cash and $4,900 in loans payable. A minimum cash balance of $37,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $37,000. 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 $37,000 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 ($3,900 per month), and rent ($6,400 per month). 1. Prepare a schedule of cash receipts for the months of July, August, and September. Sales Cash receipts from: BUILT-TIGHT Schedule of Cash Receipts from Sales July August September $ 58,500 $ 74,500 $ 53,500 Total cash receipts $ 0 S 0 $ 0 Built-Tight is preparing its master budget. Budgeted sales and cash payments follow: Budgeted sales July $ 58,500 August $ 74,500 Budgeted cash payments for Direct materials 16,060 13,340 Direct labor Overhead 3,940 20,100 3,260 16,700 September $ 53,500 13,660 3,340 17,100 Sales to customers are 25% cash and 75% on credit. Sales in June were $56,000. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $37,000 in cash and $4,900 in loans payable. A minimum cash balance of $37,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $37,000. 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 $37,000 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 ($3,900 per month), and rent ($6,400 per month). 1. Prepare a schedule of cash receipts for the months of July, August, and September. Sales Cash receipts from: BUILT-TIGHT Schedule of Cash Receipts from Sales July August September $ 58,500 $ 74,500 $ 53,500 Total cash receipts $ 0 S 0 $ 0

Answer rating: 100% (QA)

Here is the schedule of cash receipts from sales for BuiltTight BUILTT... View the full answer