Built-Tight is preparing its master budget. Budgeted sales and cash payments follow: Budgeted sales July $ 59,500 August $ 75,500 September $ 52,500 Budgeted cash payments for Direct materials Direct labor Overhead 17,060 4,940 21,100 14,340 4,260 17,700 14,660 4,340 18,100 Sales to customers are 30% cash and 70% on credit. Sales in June were $62,500. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $33,000 in cash and $5,900 in loans payable. A minimum cash balance of $33,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $33,000. 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 $33,000 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 ($4,900 per month), and rent ($7,400 per month).