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: Jul Budgeted sales Budgeted cash payments for $55,500 $71,500 56,500 Direct materials Direct labor Factory overhead 15,460 12,740 13,060 3,340 2,660 2,740 19,500 16,100 16,500 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; $44,300 in accounts receivable: $3,800 in accounts payable; and a $4,300 balance in loans payable. A minimum cash balance of $15,000 Is required. Loans are obtalned 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 ($3,300 per month), and rent ($5,800 per month). Problem 7-2A Part 1 (1) Prepare a cash receipts budget for July. August, and September Answer is complete and correct. BUILT-TIGHT Cash Receipts Budget For July, August, and September July August $ 55,50071,500 56,500 44, 400 57.200 46,200 Sales Less: ending accounts receivable Cash receipts from Cash sales Collections of prior month's receivables Total cash receipts 11,100 14,300 11,300 57,200 44,300 55,400 44,400 58,700 68,500 re a cash budget for each of 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.) Answer is not complete. BUILT-TIGHT Cash Budget For July, August, and September July August September Beginning cash balance Cash receipts from customers Total cash available Cash payments for 15,000 500 20,9608 55,400. 70.400 ! 58,700 73,700 68,500 89,460 Direct materials Direct labor 154801413,080 3,342,662.740 | 19.50016.100 16.5000 | 5,550 7,150| 5,6500 3,303,3003,3000 Sales commissions Office salaries Rent Interest on bank loan 5,8000 5.8000| 5.0000| 43 52.99347.750705 47,050 Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance Loan balance July September Loan balance-Beginning of month Additional loan (loan repayment) Loan balance End of month