Built-Tight is preparing its master budget for the quarter ended September 30, 2017. Budgeted sales and cash payments for product costs for the quarter follow:

	July			August			September
Budgeted sales	$	62,500		$	78,500		$	49,500
Budgeted cash payments for
Direct materials		16,460			13,740			14,060
Direct labor		4,340			3,660			3,740
Factory overhead		20,500			17,100			17,500

Sales are 25% cash and 75% 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; $45,300 in accounts receivable; $4,800 in accounts payable; and a $5,300 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 ($4,300 per month), and rent ($6,800 per month).

Problem 7-2A Part 1

(1) Prepare a cash receipts budget for July, August, and September.

	July	Augst	Sales
Sales
Less: ending accounts receivable
Cash receipts from:
Cash salesselected answer correct
Collections of prior months receivablesselected answer correct