Exercise 7-32A 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 August September Sales Cash payments for merchandise $63,700 41,000 $80,300 $48,300 34,100 33,300 Sales are 20% cash and 80% on credit. All credit sales are collected in the month following the sale. The June 3 balance sheet includes balances of $12,600 in cash; $42,400 in accounts receivable; $4,800 in accounts payable; and a $2,300 balance in loans payable. A minimum cash balance of $12,300 is required. Loans are obtained at the end of any month when a cash shortage occurs. Interest is 2% per month based on the beginning-of-the-month loan balance and is paid at each month-end fan 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 (5% of sales), office salaries ($4,300 per month), and rent ($6,800 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 Complete this question by entering your answers in the tabs below Required 1Required 2 Prepare a cash receipts budget for July, August, and September. July $63,700 August September Total sales 80,300 $48,300 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