brt.7 Required information[The following information applies to the questions displayed below.Built-Tight is preparing its master budget. Budgeted sales and cash payments follow.Budgeted salesBudgeted cash payments forDirect materialsDirect laborOverheadSalesCash receipts fromJuly$ 57,500Total cash receipts15,8603,74019,900Sales to customers are 20% cash and 80% on credit. Sales in June were $55,000. All credit sales are collected in themonth following the sale. The June 30 balance sheet includes balances of $41,000 in cash and $4,700 in loans payable. Aminimum cash balance of $41,000 is required. Loans are obtained at the end of any month when the preliminary cashbalance is below $41,000. Interest is 1% per month based on the beginning of-the-month loan balance and is paid at eachmonth-end. Any preliminary cash balance above $41,000 is used to repay loans at month-end. Expenses are paid in themonth incurred and consist of sales commissions (10% of sales), office salaries ($3,700 per month), and rent ($6,200 permonth).BUILT-TIGHTSchedule of Cash Receipts from SalesJuly$August$ 73,5001. Prepare a schedule of cash receipts for the months of July, August, and September.13,1403,06016,5000 $September$ 54,500August September$ 57,500 $ 73,500 $ 54,5000$13,4603,14016,9000

Budgeting promotes communication and accountability within the organization. It provides a shared…

Answered: 1. Prepare a schedule of cash receipts…

Business

Accounting

1. Prepare a schedule of cash receipts for the months of July, August, and September.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter4: Financial Planning And Forecasting

Section: Chapter Questions

Problem 4P

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