Built-Tight is preparing its master budget for the quarter ended September 30, 2015. Budgeted sales and cash payments for product costs for the quarter follow:

July

August

September

Budgeted sales

$

56,500

$

72,500

$

55,500

Budgeted cash payments for

Direct materials

15,660

12,940

13,260

Direct labor

3,540

2,860

2,940

Factory overhead

19,700

16,300

16,700

Sales are 20% cash and 80% 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; $44,500 in accounts receivable; $4,000 in accounts payable (*included in cash payments for direct materials); and a $4,500 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 ($3,500 per month), and rent ($6,000 per month).

BUILT-TIGHT
Cash Budget
For July, August, and September
	July	August	September
Beginning cash balance
Total cash available
Cash disbursements:
Interest on bank loan
July
August
Preliminary cash balance
Ending cash balance
Loan balance
	July	August	September
Loan balance - Beginning of month
Additional loan (loan repayment)
Loan balance - End of month