Problem 20-2A Manufacturing: Cash budget LO P2 Built-Tight is preparing its master budget for the quarter ended September 30, 2015. Budgeted sales and cash payments for product costs for the quarter follow: July $ 59,000 August $ 75,000 September $ 53,000 Budgeted sales Budgeted cash payments for Direct materials Direct labor Factory overhead 17,160 5,040 21,200 14,440 4,360 17,800 14,760 4,440 18,200 Sales are 30% cash and 70% 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; $46,000 in accounts receivable; $5,500 in accounts payable; and a $6,000 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 ($5,000 per month), and rent ($7,500 per month). Problem 20-2A Part 1 1. Prepare a cash receipts budget for July, August, and September. (Negative balance and Loan repayment amount should be indicated with minus sign.) BUILT-TIGHT Cash Receipts Budget For July, August, and September July August September Less ending accounts receivable Cash receipts from Total cash receipts Problem 20-2A Part 2 2. Prepare a cash budget for each of the months of July, August, and September. (Negative balance and Loan repayment amount should be indicated with minus sign.) BUILT-TIGHT Cash Budget For July, August, and September July August September Beginning cash balance Total cash available Cash disbursements: Interest on bank loan July August Preliminary cash balance Ending cash balance Loan balance July August September Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month