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Required information The following information applies to the questions 2 Built-Tight is preparing its master budget for the for product costs for the quarter follow

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Required information The following information applies to the questions 2 Built-Tight is preparing its master budget for the for product costs for the quarter follow sales and cash payments July $60,5ee August $76,500 Budgeted sales Budgeted cash payments for Direct materials Direct labor Factory overhead 16,860 4,740 20,9ee 14,140 4,060 17,5ee 4.140 17,900 Sales are 30% cash and 70% 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: $45,700 in accounts receivable, and a $5,700 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 ($4.700 per month), and rent ($7.200 per month) (1) Prepare a cash receipts budget for July, August, and September BUILT-TIGHT Cash Receipts Budget 4 2 Loss: ending accounts receiva Cash receipts from: ET Total cash receipts (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 July August September Beginning cash balance Total cash available Cash payments for: 1 1 Total cash payments Preliminary cash balance Ending cash balance Loan balance July August September Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month

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