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Part $2$ of $2$

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Built$-$Tight is preparing its master budget. Budgeted sales and cash payments follow:

$1$

points

$\backslash$table$[[,$July,August,September$],[$Budgeted sales,$$9,000,75,000,$$$53,000],[$Budgeted cash,,,$],[$payments for,,,$],[$Direct materials,$17,160,14,440,14,760],[$Direct labor,$5,040,4,360,4,440],[$Overhead$,21,200,17,800,18,200]]$

Sales to customers are $30\%$ cash and $70\%$ on credit. Sales in June were $$64,000.$ All credit sales are collected in the month following the sale. The June $30$ balance sheet includes balances of $$35,000$ in cash and $$6,000$ in loans payable. A minimum cash balance of $$35,000$ is required. Loans are obtained at the end of any month when the preliminary cash balance is below $$35,000.$ Interest is $1\%$ per month based on the beginning$-$of$-$the$-$month loan balance and is paid at each month$-$end. Any preliminary cash balance above $$35,000$ is used to repay loans at month$-$end. Expenses are paid in the month incurred and consist of sales commissions $(10\%$ of sales$),$ office salaries $($ $$5,000$ per month$),$ and rent $($ $$7,500$ per month$).$

$2.$ Prepare a cash budget for 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.$)$

Answer is not complete.

$\backslash$table$[[$BUILT$-$TIGHT$],[$Cash Budget$],[,$July,August,September$],[$Beginning cash balance,$$35,000$vv$,$$$35,000$vv$,35,000\backslash$times $],[$Add: Cash receipts,$63,700\backslash$times $,63,800$vv$,68,400],[$Total cash available,$98,700,98,800,103,400],[$Less: Cash payments for$],[$Direct materials,$17,160),14,440),14,76$C$)],[$Direct labor,$5,040,4,360\backslash$times $,4,440],[$Overhead$,21,200,17,800$vv$,18,200],[$Sales commissions,$5,900,7,500,5,300],[$Office salaries,$5,000(),5,000,5,000],[$Rent$,7,500,7,500,7,500],[$Interest on loan,$602,42\backslash$times $,$C$^(2)],[$Total cash payments,$61,860,56,642,55,200],[$Preliminary cash balance,$16,840\backslash$times $,22,158\backslash$times $,31,198\backslash$times $],[$Loan activity$],[$Additional loan,,,$()],[\backslash$table$[[$Repayment of loan to$],[$bank$]]],[$Ending cash balance,$16,840,22,158,31,198],[$Loan balance$],[,$July,August,September$],[\backslash$table$[[$Loan balance $-],[$Beginning of month$]],$$$6,000$vv$,$$$4,160,8,320],[\backslash$table$[[$Additional loan $($loan$],[$repayment$)]],(1,840)$x$,4,160$x$,],[\backslash$table$[[$Loan balance $-$ End of$],[$month$]],$$$,4,160,$$$,8,320,8,320]]$