July $ 56,500 August $ 72,500 September $ 55,500 Budgeted sales Budgeted cash payments for Direct materials Direct labor Overhead 15,660 3,540 19,700 12,940 2,860 16,300 13,260 2,940 16, 700 Sales to customers are 20% cash and 80% on credit. Sales in June were $54,000. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $45,000 in cash and $4,500 in loans payable. A minimum cash balance of $45,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $45,000. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. Any preliminary cash balance above $45,000 is used to repay loans at month-end. Expenses are paid in the month incurred and consist of sales commissions (10% of sales), office salaries ($3,500 per month), and rent ($6,000 per month). 1. Prepare a schedule of cash receipts for the months of July, August, and September. Answer is complete but not entirely correct. September $ 55,500 BUILT-TIGHT Schedule of Cash Receipts from Sales July August Sales $ 56,500 $ 72,500 Cash receipts from: Cash sales $ 11,300 $ 14,500 Collections of prior period sales 45,000 X 45,200 Total cash receipts $ 56,300 $ 59,700 $ 11,100 58,000 69,100 2. Prepare a cash budget for 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.) BUILT-TIGHT Cash Budget July August September Beginning cash balance Add: Cash receipts Total cash available Less: Cash payments for 0 0 0 Total cash payments Preliminary cash balance Loan activity Additional loan Repayment of loan to bank Ending cash balance 0 0 0 Loan balance July August September Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month