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: Budgeted sales July $ 56,500 August $ 72,500 September $ 55,500 Budgeted cash payments for Direct materials 15,660 12,940 13,260 Direct labor Overhead 3,540 19,700 2,860 16,300 2,940 16,700 Sales to customers are 20% cash and 80% on credit. Sales in June were $54,000. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $45,000 in cash and $4,500 in loans payable. A minimum cash balance of $45,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $45,000. 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 $45,000 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 ($3,500 per month), and rent ($6,000 per month). 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 September 72,500 $ 55,500 July August $ 56,500 $ Sales Cash receipts from: Cash sales Collections of prior period sales Total cash receipts $ 0 $ 0 $ 0