$2$

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Required information

$[$The following information applies to the questions displayed below.$]$

Part $2$ of $2$

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

$\backslash$table$[[,$July,August,September$],[$Budgeted sales,$$64,000,$$$80,000,$$$48,000],[$Budgeted cash payments for,,,$],[$Direct materials,$16,160,13,440,13,760],[$Direct labor,$4,040,3,360,3,440],[$Overhead$,20,200,16,800,17,200]]$

Sales to customers are $20\%$ cash and $80\%$ on credit. Sales in June were $$56,250.$ All credit sales are collect in the month following the sale. The June $30$ balance sheet includes balances of $$15,000$ in cash and $$5,000$ in loans payable. A minimum cash balance of $$15,000$ is required. Loans are obtained at the end of any month when the preliminary cash balance is below $$15,000.$ Interest is $1\%$ per month based on the beginning$-$of$-$the$-$month loan balance and is paid at each month$-$end. Any preliminary cash balance above $$15,000$ 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 $($ $$4,000$ per month$),$ and rent per month$).$

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

Note: Enter your final answers in whole dollars.

$\backslash$table$[[$BUILT$-$TIGHT$],[$Cash Budget$],[,$July,August,September$],[$Beginning cash balance$],[,,,],[$Total cash available$],[$Less: Cash payments for$],[[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[$Total cash payments$],[$Preliminary cash balance$],[$Loan activity$],[$Additional loan$],[$Repayment of loan to bank$],[$Ending cash balance$],[.],[$Loan balance$],[,$July,August,September$],[$Loan balance $-$ Beginning of month$],[$Additional loan $($loan repayment$)],[$Loan balance $-$ End of month,,,$]]$Required information

$[$The following information applies to the questions displayed below.$]$

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

Sales to customers are $20\%$ cash and $80\%$ on credit. Sales in June were $$56,250.$ All credit sales are colle

month following the sale. The June $30$ balance sheet includes balances of $$15,000$ in cash and $$5,000$ in loans payable. A

minimum cash balance of $$15,000$ is required. Loans are obtained at the end of any month when the preliminary cash

balance is below $$15,000.$ 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 $$15,000$ 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 $($ $$4,000$ per month$),$ and rent per

month$).$

Prepare a schedule of cash receipts for the months of July, August, and September.