Problem 7-2A (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 $ 60,000 August $ 76,000 September $ 52,000 Budgeted cash payments for Direct materials Direct labor Overhead 16,960 4,840 21,000 14,240 4,160 17,600 14,560 4,240 18,000 Sales to customers are 30% cash and 70% on credit. Sales in June were $62,000. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $31,000 in cash and $5,800 in loans payable. A minimum cash balance of $31,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $31,000. 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 $31,000 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 ($4,800 per month), and rent ($7,300 per month).