20.6

Bullt-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 30% cash and 70% 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; $45,600 in accounts recelvable; and a $5,600 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 repald at the end of the month. Operating expenses are paid In the month Incurred and consist of sales commissions ( 10% of sales), office salarles ( $4,600 per month), and rent ( $7,100 per month). 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.) \begin{tabular}{|l|c|c|c|} \hline \multicolumn{3}{|c|}{ Loan balance } \\ \hline & July & August & September \\ \hline Loan balance - Beginning of month & & & \\ \hline Additional loan (loan repayment) & & & \\ \hline Loan balance - End of month & & & \\ \hline \end{tabular}