Required information [The following information applies to the questions displayed below.] Built-Tight is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for product costs for the quarter follow. Budgeted sales. Budgeted cash payments for Direct materials Direct labor Factory overhead July $57,500 $73,500 August 13,140 3,060 September $ 54,500 13,460 3,140 15,860 3,740 19,900 16,500 16,900 Sales are 20% cash and 80% 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; $44,700 in accounts receivable; and a $4,700 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 ($3,700 per month), and rent ($6,200 per month). Sales are 20% cash and 80% on credit. All credit sales are collected in the month following the sale. The June 30 balance t sheet includes balances of $15,000 in cash; $44,700 in accounts receivable; and a $4,700 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 ($3,700 per month), and rent ($6,200 per month). 1. Prepare a cash receipts budget for July, August, and September. BUILT-TIGHT Cash Receipts Budget For July, August, and September Sales Less: ending accounts receivable Cash receipts from: Cash sales Collections of prior month's receivables Total cash receipts July August September $ 57,500 $ 73,500 $ 54,500 46,000 58,800 43,600 11,500 14,700 10,900 44,700 44,700 44,700 $ 56,200 $ 59,400 $55,600 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 Beginning cash balance Total cash available Cash payments for: Total cash payments Preliminary cash balance - Additional loan from bank Repayment of loan to bank Ending cash balance July Loan balance August September 0 0 Loan balance-Beginning of month Additional loan (loan repayment) Loan balance-End of month Loan balance July August September