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 $62,500 $78,589 $49,500 Budgeted sales Budgeted cash payments for Direct materials Direct labor Factory overhead 16,460 4,348 20,580 13,748 3,660 17,189 14,860 3,740 17,580 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). (1) Prepare a cash receipts budget for July, August, and September. August September BUILT-TIGHT Cash Receipts Budget For July, August, and September July Sales Less: ending accounts receivable Cash receipts from: Cash sales 0 Collections of prior month's receivables Total cash receipts $ 0 0 0 $ 0 $ 0 Additional loan (loan repayment) Ending cash balance Loan balance July August September Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month