O Required information Problem 20-2A (Algo) Manufacturing: Cash budget and schedule of cash payments LO P2 [The following information applies to the questions displayed below.) Built-Tight is preparing its master budget. Budgeted sales and cash payments follow July August September Budgeted sales S 56,000 $ 72,000 $ 56,000 Budgeted cash payments for Direct materials 15,560 12,8.40 13,160 Direct labor 3,440 2,760 2,8-40 Overhead 19,600 16,200 16,600 Sales to customers are 20% cash and 80% on credit. Sales in June were $53,500. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $47000 in cash and $4,400 in loans payable. A minimum cash balance of $47000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $47000. 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 $47000 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 ($3,400 per month), and rent ($5,900 per month) Problem 20-2A (Algo) Part 1 Problem 20-2A (Algo) Part 1 1. Prepare a schedule of cash receipts for the months of July, August, and September. BUILT-TIGHT Schedule of Cash Receipts from Sales July August September $ 56,000 $ 72,000 $ 56,000 Sales Cash receipts from Total cash receipts