Built-Tight is preparing its master budget. Budgeted sales and cash payments follow: Budgeted sales Jully $ 56,000 August $ 72,000 Budgeted cash payments for Direct materials Direct labor Overhead 12,840 2,760 16,200 September $ 56,000 15,560 3,440 19,600 13,160 2,840 16,600 Sales to customers are 20% cash and 80% on credit. Sales in June were $53,500. All credit sales are collected in the month following the sale, The June 30 balance sheet includes balances of $47,000 in cash and $4,400 in loans payable. A minimum cash balance of $47,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $47,000. 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 $47,000 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 ($3,400 per month), and rent ($5,900 per month). 1. Prepare a schedule of cash receipts for the months of July, August, and September. Sales BUILT-TIGHT Schedule of Cash Receipts from Sales July August September $ 56,000 $ 72,000 $ 56,000 Cash receipts from: Cash sales $ 11,200 $ Collections of prior period sales Total cash receipts 42,800 14,400 $ 11,200 46,720 $ 54,000 $ 61,120 $ 11,200