Required information [The following information applies to the questions displayed below.) Built-Tight is preparing its master budget. Budgeted sales and cash payments follow: July $ 57,000 August $ 73,000 September $ 55,000 Budgeted sales Budgeted cash payments for Direct materials Direct labor Overhead 15,760 3,640 19,800 13,040 2,960 16,400 13,360 3,040 16,800 Sales to customers are 20% cash and 80% on credit. Sales in June were $54,500. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $43,000 in cash and $4,600 in loans payable. A minimum cash balance of $43,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $43,000. 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 $43,000 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 ($3,600 per month), and rent ($6,100 per month). 1. Prepare a schedule of cash receipts for the months of July, August, and September. X Answer is complete but not entirely correct. BUILT-TIGHT Schedule of Cash Receipts from Sales July August September Sales $ 57,000 $ 73,000 $ 55,000 Cash receipts from: Cash sales $ 11,400 $ 14,600$ 11,000 Collections of prior period sales 43,100 % 45,600 58,400 Total cash receipts $ 54,500 $ 60,200 $ 69,400 ! Required information [The following information applies to the questions displayed below.) Built-Tight is preparing its master budget. Budgeted sales and cash payments follow: July $ 57,000 August $ 73,000 September $ 55,000 Budgeted sales Budgeted cash payments for Direct materials Direct labor Overhead 15,760 3,640 19,800 13,040 2,960 16,400 13,360 3,040 16,800 Sales to customers are 20% cash and 80% on credit. Sales in June were $54,500. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $43,000 in cash and $4,600 in loans payable. A minimum cash balance of $43,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $43,000. 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 $43,000 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 ($3,600 per month), and rent ($6,100 per month). 2. Prepare a cash budget for 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 not complete. BUILT-TIGHT Cash Budget July $ 15.000 X $ 56,000 X 71,000 Beginning cash balance August September 15,000 XS 22,522 X 60,200 69,400 75,200 91,922 Total cash available Less: Cash payments for Direct materials Direct labor Overhead 13,360 3,040 15,760 3,640 19,800 5,700 3,600 16,800 Sales commissions 13,040 2,960 16,400 7,300 3,600 6,100 32 x 5,500 Office salaries DOC Rent 6,100 46 3,600 6,100 0 0 54,646 48,400 49,432 25,768 % 16,354 X 43,522 X Interest on loan Total cash payments Preliminary cash balance Loan activity Additional loan Repayment of loan to bank Ending cash balance 0 0 1,354 X 15,000 3,246 X 22,522 0 0 0 43,522 Loan balance $ Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month July 4,600 $ $ (1,354) X ) 3,246 $ August September 3,246 $ 0 (3,246) X 0 $ 0 0 $