$!$

Required information

Problem $20-2$A $($Algo$)$ Manufacturing: Cash budget and schedule of cash payments LO P$2$

$[$The following information applies to the questions displayed below.$]$

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

Sales to customers are $20\%$ cash and $80\%$ on credit. Sales in June were $$53,000.$ All credit sales are collected in the

month following the sale. The June $30$ balance sheet includes balances of $$49,000$ in cash and $$4,300$ in loans payable.

A minimum cash balance of $$49,000$ is required. Loans are obtained at the end of any month when the preliminary cash

balance is below $$49,000.$ Interest is $1\%$ per month based on the beginning$-$of$-$the$-$month loan balance and is paid at each!

Required Information

Problem $20-2$A $($Algo$)$ Manufacturing: Cash budget and schedule of cash payments LO P$2$

$[$The following informotion opplies to the questions clisployed below.$]$

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

$\backslash$table$[[,$July,August,September$],[$Budgeted sales,$$55,500,$$$71,500,$$$56,500],[$Budgeted cash payments for,,,$],[$Direct materials,$15,460,12,740,13,060],[$Direct labor,$3,340,2,660,2,740],[$Dverhead$,19,500,16,100,16,500]]$

Soles to customers ore $20\%$ cash and $80\%$ on credit. Soles in June were $$53,000.$ All credit soles ore collected in the month following the sole. The June $30$ bolance sheet includes bolonces of $$49,000$ in cash and $$4,300$ in losns paysble. A minimum cosh balance of $$49,000$ is required. Loons are obtained at the end of any month when the preliminsry cash bolance is below $$49,000.$ Interest is $1\%$ per month bosed on the beginning$-$of$-$the$-$month loon bolance snd is paid at each month$-$end. Any preliminary cosh bolance sbove $$49,000$ is used to repsy loses st month$-$end. Expenses ore paid in the month incurred and consist of sales commissions $(10\%$ of sales$),$ office solsries $($ $$3,300$ per month$),$ and rent $($ $$5,800$ per month$).$

Problem $20-2$A $($Algo$)$ Part $2$

$2$ Prepare $8$ cash budget for the months of July, August, and September. $($Negatlve balances and Loan repayment amounts $($If any$)$ should be Indicated with minus sign. Enter your final answers In whole dollars.$)$

$\backslash$table$[[$BUILT$-$TIGHT$],[$Caan Budget$],[,$July,Auguat,September$],[$Beginning cash balance$],[,,,],[$Total cash available$],[$Less: Cash payments for$],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[7,,,],[$Total cash payments,$0,0,-],[$Preliminary cash balance$],[$Loan activity$],[,,,],[\backslash$table$[[$Repayment of loan to bank$]]],[$Ending cash balance,$0,0,-],[$Loan balance$],[,$July,Auguat,September$],[$Loan balance $-$ Beginning of menth$],[$Additional loan $($losan repsyment$)],[$Loan balance $-$ End of month,,,$]]$

month$-$end. Any preliminary cash balance above $$49,000$ is used to repay loans at month$-$end. Expenses are paid in the

month incurred and consist of sales commissions $(10\%$ of sales$),$