Required information 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: Sales to customers are 30% cash and 70% on credit. Sales in June were $64,000. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $35,000 in cash and $6,000 in loans payable. A minimum cash balance of $35,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $35,000. Interest is 1% per month based on the beginning-of-themonth loan balance and is paid at each month-end. Any preliminary cash balance above $35,000 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 ( $5,000 per month), and rent ( $7,500 per month). 1. Prepare a schedule of cash receipts for the months of July, August, and September. 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.) ! Required information \begin{tabular}{|l|r|r|r|} \hline Total cash payments & 0 & 0 & 0 \\ \hline Preliminary cash balance & & & \\ \hline Loan activity & & & \\ \hline Additional loan & & & \\ \hline Repayment of loan to bank & & & \\ \hline Ending cash balance & & & \\ \hline & & & \\ \hline \hline & Loan balance & & \\ \hline & July & August & September \\ \hline Loan balance - Beginning of month & & & \\ \hline Additional loan (loan repayment) & & & \\ \hline Loan balance - End of month & & & \\ \hline \end{tabular}