Required information Problem ?
I need help solving this problem. There are two parts. Thank you so much!
- Attachment 1
- Attachment 2
- Attachment 3
- Attachment 4
Required informationProblem ?-2A Manufacturing: Cash budget LO P2 [The following information applies to the questions displayed below] Built—Tight is preparing its master budget for the quarter ended September 30, 2013'. Budgeted sales and cash paymentsfor product costs for the quarter follow: July August September Budgeted sales $59,500 $75,500 $52,500Budgeted cash payments forDirect materials 11.060 14.340 14.660Direct labor 4.940 4,260 4,340Factory overhead 21.100 17.700 18.100 Sales are 30% cash and 3"0‘36 on crediL All credit sales are collected in the month following the sale. The June 30 balancesheet includes balances of $15,000 in cash; $45,900 in accounts receivable; $5,400 in accounts payable; and a $5,900balance in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end of any monthwhen a cash shortage occurs. Interest is 1% per month based on the beginning-of—the-month loan balance and is paid ateach month—end. If an excess balance of cash exists, loans are repaid at the end ofthe month. Operating expenses arepaid in the month incurred and consist of sales commissions {10% of sales}, office salaries [$4,900 per month], and rent{$1400 per month].
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