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Managerial Accounting: Assignment 2

13/10/2020 Client: murali Deadline: 10 Days

 


Professional Assignment 2 –


Built-Tight is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for product costs for the quarter follow.





Sales are 20% cash and 80% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $15,000 in cash; $45,000 in accounts receivable; $4,500 in accounts payable; and a $5,000 balance in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end of any month when a cash shortage occurs. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. If an excess balance of cash exists, loans are repaid at the end of the month. Operating expenses are paid in the month incurred and consist of sales commissions (10% of sales), office salaries ($4,000 per month), and rent ($6,500 per month).


Prepare a cash budget for each of the months of July, August, and September. (Round amounts to the dollar.)


Please do this assignment is a word doc with APA 7 formatting. Add the screenshots of the calculations you did in excel for this assignment and then explain your work in detail about what calculation you did and how you came to the conclusion. Provide in-text citations. Include the initial situation and the initial assumptions in your answer. At least 5 references are required among which one should be the textbook as the source of the data. 

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