According to the attached question and answer, please provide a detailed text explanation?without tables? of how the question is being solved. (it's for paper purposes, please also include references if needed)

Thank you.

A1 i X V fx Solution - A B C D E F G Solution - Built-Tight IN Cash Budget W For the months of July, August, and September July August September Quarter 5 Beginning cash balance 15000 =C23 =D23 =C5 6 Add: Budgeted cash collections From current month cash sales =64000* 20% =80000*20% =48000*20% =SUM(C7:E7) From previous month credit sales 45000 =64000* 80% =80000*80% =SUM(C8:E8) CO Total cash collections =SUM(C7:C8) =SUM(D7:D8) =SUM(E7:E8) =SUM(F7:F8) 10 Total cash available before disbursements =C5+C9 =D5+D9 =E5+E9 =F5+F9 11 Less: Budgeted cash payments for 12 Direct materials 16160 13440 13760 =SUM(C12:E12) 13 Direct labor 4040 3360 3440 =SUM(C13:E13) 14 Factory overhead 20200 16800 17200 =SUM(C14:E14) 15 For sales commissions =64000* 10% =80000* 10% =48000* 10% =SUM(C15:E15) 16 For office salaries 4000 4000 4000 =SUM(C16:E16) 17 For rent 6500 6500 6500 =SUM(C17:E17) 18 For interest on loan =5000* 1% =ROUND((5000-450)*1%,0) 0 =SUM(C18:E18) 19 Total budgeted cash payments =SUM(C12:C18) =SUM(D12:D18) -SUM(E12:E18) =SUM(F12:F18) 20 Cash available before financing =C10-C19 =D10-D19 -E10-E19 =F10-F19 21 Add: Cash borrowed 0 0 0 =SUM(C21:E21) 22 Less: Cash repaid =C20-15000 =5000-C22 0 =SUM(C22:E22) 23 Ending cash balance =C20+C21-C22 =D20+D21-D22 =E20+E21-E22 =F20+F21-F22 24A1 X v fx Solution - A B C D E F G Solution - Built-Tight Cash Budget W N For the months of July, August, and September July August September Quarter Beginning cash balance $15,000 $15,000 $25,504 $15,000 Add: Budgeted cash collections From current month cash sales $12,800 $16,000 $9,600 $38,400 From previous month credit sales $45,000 $51,200 $64,000 $160,200 Total cash collections $57,800 $67,200 $73,600 $198,600 10 Total cash available before disbursements $72,800 $82,200 $99,104 $213,600 11 Less: Budgeted cash payments for 12 Direct materials $16,160 $13,440 $13,760 $43,360 13 Direct labor $4,040 $3,360 $3,440 $10,840 14 Factory overhead $20,200 $16,800 $17,200 $54,200 15 For sales commissions $6,400 $8,000 $4,800 $19,200 16 For office salaries $4,000 $4,000 $4,000 $12,000 17 For rent $6,500 $6,500 $6,500 $19,500 18 For interest on loan $50 $46 SO $96 19 Total budgeted cash payments $57,350 $52,146 $49,700 $159,196 20 Cash available before financing $15,450 $30,054 $49,404 $54,404 21 Add: Cash borrowed SO SO SO SO 22 Less: Cash repaid $450 $4,550 SO $5,000 23 Ending cash balance $15,000 $25,504 $49,404 $49,404 24BuiltTight is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for product costs for the quarter as shown in the picture. 1 2 Budgeted sales 364.000 $80,000 348.000 3 Budgeted cash payments for . ~ ~ 4 Direct materials . 16,160 . 13,440 . 13,750 5 Direct labor 4.040 3,360 3.440 6 Factory overhead 20.200 16.800 17.2 00 Sales 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; $45,000 in accounts receivable; $4,500 in accounts payable; and a $5,000 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 ($4,000 per month), and rent ($6,500 per month). Prepare a cash budget with explanations for each of the months of July, August, and September. (Round amounts to the dollar.)