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 $63,400 41,600 August $80,600 33,000 September $48,600 33,800 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 $12,900 in cash; $47,000 in accounts receivable; $5,100 in accounts payable; and a $2,600 balance in loans payable. A minimum cash balance of $12,600 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 ($4,600 per month), and rent ($7,100 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. KELSEY Cash Budget For July, August, and September July August $ 12,900 $ 12,600 September $ 24,371 Beginning cash balance Cash sales Total cash available Cash payments for: 0 0 Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance Loan balance July August September $ 2,600 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month