Problem 22-2A Manufacturing: Cash budget LO P2 [The following information applies to the questions displayed below] Bull-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 August September Budgeted sales 560,500 $76,500 $ 51,500 Budgeted cash payments for Direct materials 16,860 14,140 14,460 Direct labor Factory overhead 17,5ee 17,900 4,060 4,140 4,740 20,900 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, 545,700 in accounts receivable, and a $5,700 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 (54,700 per month), and rent ($7,200 per month) Problem 22-2A Part 1 1. Prepare a cash receipts budget for July August, and September BUILT-TIGHT Cash Receipts Budget For July, August, and September July August September Sales $ 60,500 3 76,500 551.500 Less ending accounts receivable 42,350 53.550 36,050 Cash receipts from Cash sales 18,150 22.950 15,450 Collections of prior month's receivables 42350 53.550 Total cash receipts $18.150 5 65,300 569,000