Required information Problem 20-2A (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 $ 54,000 August $ 70,000 September $ 58,000 Budgeted sales Budgeted cash payments for Direct materials Direct labor Overhead 15,160 3,040 19,200 12,440 2,360 15,800 12,760 2,440 16,200 Sales to customers are 15% cash and 85% on credit. Sales in June were $51,500. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $55,000 in cash and $4,000 in loans payable. A minimum cash balance of $55,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $55,000. 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 $55,000 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 ($3,000 per month), and rent ($5,500 per month). Problem 20-2A (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 September $ 54,000 $ 70,000 $ 58,000 Sales Cash receipts from: Total cash receipts $ 0 $ 0 $ 0 Problem 20-2A (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 0 0 Total cash payments Preliminary cash balance Loan activity Additional loan Repayment of loan to bank Ending cash balance 0 0 0 Loan balance July August September Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month