21 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. July August September Part 1 of 2 Budgeted sales $63,500 $79,500 $ 48 , 500 Budgeted cash payments for Direct materials 16, 260 13,540 13 , 860 Direct labor 4, 140 3,460 3,540 10 Factory overhead 20,300 16,900 17,300 points Sales are 25% cash and 75% 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; $45,100 in accounts receivable; and a $5,100 balance in loans payable. A eBook 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 ($4,100 per month), and rent ($6,600 per month). Print References 1. Prepare a cash receipts budget for July, August, and September. BUILT-TIGHT + Cash Receipts Budget For July, August, and September July August September Sales Less: ending accounts receivable Cash receipts from: Cash sales 61,500 0 0 Collections of prior month's receivables Total cash receipts $ 61,500 $ 0 $ 0