QUESTION 15:

Built-Tight is preparing its master budget for the quarter ended September 30, 2017. Budgeted sales and cash payments for product costs for the quarter follow:

	July			August			September
Budgeted sales	$	60,000		$	76,000		$	52,000
Budgeted cash payments for
Direct materials		16,960			14,240			14,560
Direct labor		4,840			4,160			4,240
Factory overhead		21,000			17,600			18,000

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; $45,800 in accounts receivable; $5,300 in accounts payable; and a $5,800 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 ($4,800 per month), and rent ($7,300 per month).

PART 1: Prepare a cash receipts budget for 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 Receipts Budget
For July, August, and September
	July	August	September
Less: ending accounts receivable
Cash receipts from:
Total cash receipts

PART 2: ) Prepare a cash budget for each of the months of July, August, and September.