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 September $58,500 $74,500 53, 500 Budgeted sales Budgeted cash payments for Direct materials 16,060 13,340 3,940 3,260 13,660 3, 340 17,100 Direct labor Factory overhead 20,100 16,700 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; $44,900 in accounts receivable; $4,400 in accounts payable; and a $4,900 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 ($3,900 per month), and rent ($6,400 per month) Problem 7-2A Part 2 (2) Prepare a cash budget for each of the months of July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Enter your final answers in whole dollars.) Problem 7-2A Part 2 (2) Prepare a cash budget for each of the months of July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Enter your final answers in whole dollars.) &Answer is complete but not entirely correct. BUILT-TIGHT Cash Budget For July, August, and September August July September 15,000$ 17.786 24.731 Beginning cash balance Cash receipts from customers595262,50069,250 Total cash available 74,525 80,286 93.981 Cash payments for: 6,13,34013,660 Direct materials 3,340 20.100. 16,700 17.1000 3,260 Direct labor 3,940 Overhead .4505.3 5,350 Sales commissions 5,350 3,900 Office salaries 3,900 6.400 6.4006 Rent 6,400 Interest on bank loan 49 Total cash payments 56,299 51,095 49,750 8,22629,191 49,750 Prel liminary cash balance Additional loan (loan repayment) 18,226 29,191 49,750 Ending cash balance Loan balance July September August 4,900 5,340 $9,800 Loan balance Beginning of month Additional loan (loan repayment) 440 4,460 5,340 $ 9,800 9.800 Loan balance End of month