prepare a schedule of cash receipts for the months of July, August and September, then prepare a cash budget for the months of July, August and September.

Required information [The following information applies to the questions displayed below.] Built-Tight is preparing its master budget. Budgeted sales and cash payments follow: Sales to customers are 20% cash and 80% on credit. Sales in June were $52,500. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $51,000 in cash and $4,200 in loans payable. A minimum cash balance of $51,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $51,000. 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 $51,000 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 ($3,200 per month), and rent ($5,700 per month). 1. Prepare a schedule of cash receipts for the months of July, August, and September. 2. Prepare a cash budget for the months of July, August, and September. Note: Negative balences and Loan repayment amounts (if any) should be indicated with minus sign. Enter your final answers in whole dollars. \begin{tabular}{|l|r|r|r|} \hline Loan activity & & & \\ \hline Additional loan & & & \\ \hline Repayment of loan to bank & & & \\ \hline Ending cash balance & & & \\ \hline & & 0 & \\ \hline \hline \multicolumn{1}{|c|}{ Loan balance } & & \\ \hline July & August & September \\ \hline Loan balance - Beginning of month & & & \\ \hline Additional loan (loan repayment) & & & \\ \hline Loan balance - End of month & & & \\ \hline \end{tabular}