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Built-Tight is preparing its master budget Budgeted sales and cash payments follow. July August September Budgeted sales $ 59,508 $ 75,580 $ 52, 500 Budgeted

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Built-Tight is preparing its master budget Budgeted sales and cash payments follow. July August September Budgeted sales $ 59,508 $ 75,580 $ 52, 500 Budgeted cash payments for Direct materials 17,060 14, 340 14, 660 Direct labor 4,948 4, 260 4, 340 Overhead 21, 108 17,790 18, 180 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). 2. Prepare a cash budget for 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.) BUILT-TIGHT Cash Budget July August September Beginning cash balance $ 33,000 $ 33,000 Add: Cash receipts Total cash available Less: Cash payments for Direct materials 17.060 14,340 14.660 Direct labor 4.940 1.260 4.340 Overhead 21.100 17.700 18.100 Sales commissions Office salaries 4.900 4,900 4,900 Rent 7.400 7.400 7,400 Interest on loan Total cash payments 65,400 48,600 48.400 Preliminary cash balance Loan activity Additional loan Repayment of loan to bank Ending cash balance O O o Loan balance July August September Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month

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