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:

	July					August					September
Budgeted sales		$	63,900				$	80,100				$	48,100
Budgeted cash payments for merchandise			40,600					33,500					34,300

Sales are 15% cash and 85% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $12,100 in cash; $45,100 in accounts receivable; $4,600 in accounts payable; and a $2,100 balance in loans payable. A minimum cash balance of $12,100 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. 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 (5% of sales), office salaries ($4,100 per month), and rent ($6,600 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.

(1) Prepare a cash receipts budget for July, August, and September. July August September 80,100 $ 12,015 $ 68,085 Total sales 63,900 $ 48,100 7,215 40,885 Cash sales 15% $ 9,585 $ Credit sales 85% 54,315 KELSEY Cash Receipts Budget For July,August, and September July August September Cash sales 9,585 $ 12,015 $ 7,215 Collections of accounts receivable Total cash receipts