Problem 20-2A Built-Tight Cash Receipts Budget For Quarter Ending September 30 July August 49 Budgeted Sales (in dollars) 64,000 $ 80,000 50 Cash Sales (Sales x 20%) 12,800 $ 16,000 51 Credit Sales (Sales x 80%) 51,200 $ 64,000 September $ 48,000 $ 9,600 $ 38,400 $ 53 Budgeted Cash Receipts: 54 Cash sales 55 Accounts recievable 64,000 80,000 48,000 57 Total Budgeted Cash Receipts Self check Built-Tabst Problem 20-2A Manufacturing: Cash budget P2 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. July $64,000 cm August $80,000 September $48,000 2 Budgeted sales 3 Budgeted cash payments for 4 Direct materials 5 Direct labor 6 Factory overhead 16.160 4,040 20,200 13,440 3,360 16,800 13,760 3,440 17,200 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 $15.000 in cash; $45.000 in accounts receivable; $4.500 in accounts payable; and a $5,000 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 ($4.000 per month), and rent ($6.500 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. (Round amounts to the dollar.)