Required information Problem 7-2A Manufacturing: Cash budget LO P2 [The following information applies to the questions displayed below.] 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 Septemben $63,500 $79,500 48,500 Budgeted sales Budgeted cash payments for Direct materials Direct labor Factory overhead 13,860 3, 540 17,300 16,260 13,540 4,140 3,460 20,300 16,900 Sales are 25% cash and 75% 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; $45,100 in accounts receivable; $4,600 in accounts payable and a $5,100 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 ($4,100 per month), and rent ($6,600 per month) (2) Prepare a cash budget for each of 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 For July, August, and September August September LI 15,000 $ 60,975 75,975 15,000 67,500 82,500 Beginning cash balance 71,750 ash receipts from customers Total cash available Cash payments for: Direct materials Direct labor Overhead Sales commissions Office salaries Rent Interest on bank loan 16,260 4,140 20,300 13,540 3,460 16,900 13,860 3,540 17,300 Total cash payments 40,700 33,900 34,700 Sales commissions Office salaries Rent Interest on bank loan 33,900 34,700 Total cash payments Preliminary cash balance Additional loan (loan repayment) Ending cash balance 40,700 Loan balance July August September Loan balance Beginning of month Additional loan (loan repayment) Loan balance End of month