Professional Assignment 2 Read your textbook and other peer-reviewed publications, write a minimum of three (3) pages of high quality well-written APA formatted standard about the following scenario....

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Professional Assignment 2
Read your textbook and other peer-reviewed publications, write a minimum of three (3) pages of high quality well-written APA formatted standard about the following scenario. Please keep in mind that this assignment is quantitative, therefore do not forget to use the figures and charts.
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 incu
ed 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.)
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The content include these concepts:
    Course Learning Objectives (CLOs)
    MBA Program Objectives
    1. Identify the role of managerial accounting in decision making, and the basic terms used to present useful information. Differentiate various global perspectives on the management of accounting and contrast them against US companies.
    1, 2, 3, 5, 8
    2. Compute manufacturing costs of goods sold (cogs) and examine the decision-making process pertinent to job order costing and budgeting analysis.
    1, 2, 3, 8, 9
    3. Perform an analysis of process costing and construct a theoretical framework that provides meaningful analysis for management.
    2, 3, 6, 8, 9
    4. Evaluate the concept of overhead costing and conduct a meaningful analysis of its effect on managerial decisions.
    2, 3, 6, 8, 9
    5. Analyze cost behaviors in relation to sales volume and making ethical managerial decisions that positively affect the bottom-line. Recommend strategies for problem solving related to these decisions.
    2, 3, 6, 7, 8, 9
    6. Determine cash flow reporting to include its purpose and format as it relates to statements, operating, investing, and financial activities. Discuss the importance of financial statement analysis in reference to decision making.
    2, 3, 4, 6, 8
Additional information about APA format
APA Reference:
APA Citation-machine website:
https:
www.citationmachine.net/apa/cite-a-website
APA Citing in-text
https:
esearch.moreheadstate.edu/c.php?g=107001&p=695202
Answered 3 days AfterApr 07, 2022

Solution

Ayushi answered on Apr 11 2022
11 Votes
Cash Budget Report:
A cash budget is prepared for estimating the inflows and outflows of cash that has taken place during particular time period which can be monthly, weekly, quarterly and even annually (Bragg & Bragg, 2022). The purpose of preparing the cash budget is to determine the amount of cash company has at the end of a period, so that estimation can be made whether the company has sufficient funds or not ca
y out its operations.
In the given case of Built-Tight, various details related to the budget of the company regarding the sales and the cost are given and by using them a cash budget is required to be prepared for the month of July, august and September. The budgeted sales of the company for July, august and September are $64000, $80000 and $48000 respectively out of which 20% of the sales are cash and the rest are on credit. For the purpose of preparing the cash budget we would need total receipts generated by the business which is an sum of cash sales as well as the collection that has been done from the from the debtors of the previous month. So on basis of this total receipts for July, August and September stands at $57800, $67200 and $73600 respectively. Check the following schedule for the same:
    Cash Receipts from Sales
     
    July
    August
    Septembe
    Total Sales
    $64,000
    $80,000
    $48,000
    Cash Sales
    $12,800
    $16,000
    $9,600
    Collection for Previous...
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