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 $62,400 43,600 August $ 81,600 32,000 September $ 49,600 32,800 Sales are 20% cash and 80% on credit. Sales in June were $57,850. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $13,900 in cash and $6,600 in loans payable. A minimum cash balance of $8,500 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $8,500. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. If a preliminary cash balance above $8,500 at month-end exists, loans are repaid from the excess. Expenses are paid in the month incurred and consist of sales commissions (10% of sales), office salaries ($5,600 per month), and rent ($8,100 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2