Exercise 20-32A (Algo) Merchandising: Cash budget and schedule of cash receipts LO P4 Kelsey is preparing its master budget. Budgeted sales and cash payments for merchandise purchases for the next three months follow Budgeted Sales Cash payments for merchandise purchases July $63,900 40,600 August $ 80,100 33,500 September $ 48,100 34,300 Sales are 20% cash and 80% on credit. Sales in June were $56,350. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $15,100 in cash and $5,100 in loans payable. A minimum cash balance of $18,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $18,000. Interest is 2% per month based on the beginning-of-the-month loan balance and is paid at each month-end. If a preliminary cash balance above $18,000 at month-end exists, loans are repaid from the excess. Expenses are paid in the month incurred and consist of sales commissions (5% of sales), office salaries ($4,100 per month), and rent ($6,600 per month). (1) Prepare a schedule of cash receipts from sales for July, August, and September. (2) Prepare a cash budget for July, August, and September. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a schedule of cash receipts from sales for July, August, and September. KELSEY Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a schedule of cash receipts from sales for July, August, and September. KELSEY Schedule of Cash Receipts from Sales July August September Sales $ 63,900 $ 80,100 $ 48,100 Cash receipts from Cash sales $ 12,780 $ 16,020 $ 9,620 Collections of prior period sales Total cash receipts < Required 1 Required 2 > Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) KELSEY Cash Budget July August September Beginning cash balance Total cash available Cash payments for Total cash payments Preliminary cash balance Ending cash balance 0 0 0 o Loan balance July August September Loan balance-Beginning of month $ 5,100 Total cash available Cash payments for Total cash payments Preliminary cash balance Ending cash balance Loan balance-Beginning of month Additional loan (loan repayment) Loan balance-End of month 0 Loan balance July August September $ 5,100