please provide some explanation for the preliminary cash balance, additional loan from bank, and the repayment of loan to bank. also explanation for the september beginning cash balance

apter 20 Homework Help Save & Su Check my we Required information [The following information applies to the questions displayed below) 2 of 2 Built-Tight is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for product costs for the quarter follow its July $62,500 August $78,500 September $ 49,500 Budgeted sales Budgeted cash payments for Direct materials Direct labor Factory overhead eBook 16,462 4,342 20, 5ee 13,740 3,660 17,100 14,060 3,740 17.500 lorences Sales are 25% cash and 75% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $15,000 in cash: $45,300 in accounts receivable: $4,800 in accounts payable, and a $5,300 balance in loans payable. A minimum cash balance of $15,000 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 ($4,300 per month), and rent ($6,800 per month). Homework 6 Sorved Help Save & Exit Sul Check my wo 2. Prepare a cash budget for each of 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.) September : 71,250 BUILT-TIGHT Cash Budget For July, August, and September July August Beginning cash balance $ 15,000 $ 15,000 Cash receipts from customers 60,925 66,500 | Total cash available 75,925 81,500 Cash payments for: Direct materials 16,4601 13,7401 Direct labor 4,3401 3,660 Overhead 20,500 17,100 Sales commissions 6,250 7,850 Office salaries 4,300 4,300 6,800 6,800 Rent 14,060 3,740 17,500 4,950 4,300 6.800 of fi ! Next > Required information 71,250 Part 2 of 2 60,925 75,925 66,500 81,500 4.16 points Cash receipts from customers Total cash available Cash payments for: Direct materials Direct labor Overhead Sales commissions Office salaries Rent Interest on bank loan Total cash payments Preliminary cash balance Additional loan from bank Repayment of loan to bank Ending cash balance 16,460 4,3401 20,5001 6,250 4,3001 6,800 53 58,703 13,740 3,660 17,100 7,850 4,3001 6,800 eBook 14,060 3,740 17,500 4,950 4,300 6,800 Print References 53,450 5 1,350 Part 2 of 2 20,5001 6,250 4,3001 6,800 53 58,703 17,1001 7,850 4,3007 6,800 Required information uverneaa Sales commissions Office salaries Rent Interest on bank loan Total cash payments Preliminary cash balance Additional loan from bank Repayment of loan to bank Ending cash balance 17,5001 4,950 4,300 6,800 4.16 points 53,450 5 1,350 eBook Print H00 References Loan balance July August September Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month Mc Graw Hill