Problem 22-2A (Algo) Manufacturing: Cash budget and schedule of cash payments LO P2 [The following information applies to the questions displayed below] Built-Tight is preparing its master budget. Budgeted sales and cash payments follow: July Budgeted sales $ 60,500 August $ 76,500 September $ 51,500 Budgeted cash payments for Direct materials. 16,860 14,140 14,460 4,740 Direct labor Overhead 4,060 4,140 20,900 17,500 17,900 Sales to customers are 30% cash and 70% on credit. Sales in June were $61,000. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $29,000 in cash and $5.700 in loans payable. A minimum cash balance of $29,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $29,000. 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 $29,000 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 ($4,700 per month), and rent ($7.200 per month) Problem 22-2A (Algo) Part 1 1. Prepare a schedule of cash receipts for the months of July, August, and September. Problem 22-2A (Algo) Part 1 1. Prepare a schedule of cash receipts for the months of July, August, and September. BUILT-TIGHT Schedule of Cash Receipts from Sales July August 60.500 3 76.500 September $ 51,500 Sales Cash receipts from: 0 0 0 Total cash receipts S S GA Problem 22-2A (Algo) Part 2 2. Prepare a cash budget for 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.) BUILT TIGHT Cash Budget July August September Beginning cash balance Total cash available Less: Cash payments for Total cash payments Preliminary cash balance Loan activity Additional loan 0 0 Total cash payments Preliminary cash balance Loan activity Additional loan Repayment of loan to bank Ending cash balance Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month Loan balance July 0 0 August September 0 0