Exercise 20-32A Merchandising: Cash budget LO P4 Kelsey is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for merchandise for the next three months follow. Budgeted Sales Cash payments for merchandise July $62,400 43,600 August $81,600 32,000 September $49,600 32,800 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 $13,900 in cash; $51,100 in accounts receivable; $6,100 in accounts payable; and a $3,600 balance in loans payable. A minimum cash balance of $13,600 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 ($5,600 per month), and rent ($8,100 per month). (1) Prepare a cash receipts budget for July, August, and September (2) Prepare a cash budget for each of the months of July, August, and September. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a cash receipts budget for July, August, and September July August September 62,400 $ 81,600 $ 49,600 Total sales $ Cash salos 20% Credit sales 80% Required 1 Required 2 Prepare a cash receipts budget for July, August, and September. Total sales July August September 62,400 $ 81,600 $ 49,600 $ $ Cash sales 20% Credit sales 80% KELSEY Cash Receipts Budget For July, August, and September July August September Cash sales Collections of accounts receivable Total cash receipts Required 2 > amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) KELSEY Cash Budget For July, August, and September July August $ 13,900 September Beginning cash balance Total cash available Cash payments for: Total cash payments Preliminary cash balance Ending cash balance Loan balance July August September Loan balance - Beginning of month $ 3,600 Additional loan (loan repayment) Loan balance - End of month