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! Required information [ The following information applies to the questions displayed below. ] Built - Tight is preparing its master budget. Budgeted sales and

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Required information
[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-the-month 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 ( $7,500 per
month).
Prepare a cash budget for the months of July, August, and September.
Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Enter your final answers in
whole dollars. \table[[BUILT-TIGHT],[Cash Budget],[,July,August,September],[Beginning cash balance,35,000,35,000,],[Add: Cash receipts,62,500,63,800,68,400],[Total cash available,97,500,98,800,],[Less: Cash payments for],[Direct materials,17,160,14,440,14,760],[Direct labor,5,040,4,360,4,440],[Overhead,21,200,17,800,18,200],[Sales commissions,5,900,7,500,5,300],[Office salaries,5,000,5,000,5,000],[Rent,7,500,7,500,7,500],[Interest on loan,60,,0],[Total cash payments,61,860,56,600,55,200],[Preliminary cash balance,35,640,,],[Loan activity],[Additional loan,0,0,0],[Repayment of loan to bank],[Ending cash balance,35,640,0,0],[Loan balance],[,July,August,September]]
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of 10\table[[Loan balance],[Loan balance - Beginning of month,July,August,September],[$,6,000,$,6,000],[Additional loan (loan repayment)],[Loan balance - End of month,$,6,000,,,]]
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