7 Part 2 of 2 148 points Required Information [The following information applies to the questions displayed below) BuiltTight 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 Budgeted sales $55,000 $71,000 $57,000 Budgeted cash payments for Direct materials 15,360 12,640 12,960 Direct labor 3,240 2,560 2,640 Factory overhead 19,400 16.000 16,400 Soles 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: $44,200 in accounts receivable, and a $4,200 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 ($3,200 per month and rent ($5.700 per month), 2. Prepare a cash budget for each of the month of July August, and September (Negative balances and Loan repayment amounts of any should be indicated with minus sign. Enter your final answers in whole dollars) consist of sales commissions (10% of sales), office salaries ($3,200 per month), and rent ($5,700 per month), 22 of 2 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.) Answer is complete but not entirely correct. BUILT-TIGHT Cash Budget For July, August, and September July August September Beginning cash balance $ 55,000 $ 71,000 $ 57,000 Cash receipts from customers 45,600 58,400 44,000 Total cash available 100,600 129.400 101,000 Cash payments for Direct materials 15,360 12,640 12,960 Direct labor 3.240 2,560 2,640 Overhead 19,400 16,000 16,400 Sales commissions 19,400 1,600X 16,400 Office salaries 3,600X 3,600 3.600 Rent 6.100 6.100 6.100 Interest on bank loan 46% 32% 0 Total cash payments 67.146 42,532 58.100 Preliminary canh balance 16,354 25,7683 43,5223 Additional loan from bank (1.354) (3,246) 0 Repayment of loan to bank 3 Ending cash balance 15,000 22,522 43,522 OOOOOOO Loan balance July 4,6003 September 2.705 Loan Balance - Beginning of mont Additional loan doan repayment) Loan balance - End of month August 5,954 (3.246) 2.700 1,3540 5,054 $ 2.700