1. Prepare a cash receipts budget for July, August, and September.

2. Prepare a cash budget for each of the months of July, August, and September.

Required information [The following information applies to the questions displayed below. Built-Tight is preparing its master budget for the quarter ended September 30, 2017. Budgeted sales and cash payments for product costs for the quarter follow: July August September Budgeted sales Budgeted cash payments for $64, 000 $80,000 $48,000 Direct materials Direct labor Factory overhead 16, 160 4, 040 20, 200 13, 440 3, 360 16, 800 13,760 3, 440 17, 200 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 ($6,500 per month). (1) Prepare a cash receipts budget for July, August, and September. BUILT-TIGHT Cash Receipts Budget For July, August, and September July August September Less: ending accounts receivable Cash receipts from 0 Total cash receipts 01$ 0 (2) Prepare a cash budget for each of the months of July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Enter your final answers in whole dollars BUILT-TIGHT Cash Budget July August September Cash payments for Required information Total cash payments Preliminary cash balance Ending cash balance Loan balance July August September Loan balance- Beginning of month Additional loan (loan repayment) Loan balance End of month