Problem 20-2A Manufacturing: Cash budget and schedule of cash payments P2 Built-Tight is preparing its master budget. Budgeted sales and cash payments follow. July Budgeted sales $64,000 August $80,000 September $48,000 Budgeted cash payments for Direct materials 16,160 13,440 13,760 Direct labor 4,040 3,360 3.440 Overhead 20,200 16.800 17,200 Sales to customers are 20% cash and 80% on credit. Sales in June were $56,250. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $15,000 in cash and $5,000 in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $15,000. 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 $15,000 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 ($4,000 per month), and rent ($6,500 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. Round interest payments to the dollar.