Required Information [The following Information applies to the questions displayed below.] Built-Tight is preparing its master budget. Budgeted sales and cash payments follow: Budgeted sales July $ 56,000 August $ 72,000 September $ 56,000 Budgeted cash payments for Direct materials Direct labor Overhead 15,560 3,440 19,600 12,840 2,760 16,200 13,160 2,840 16,600 Sales to customers are 20% cash and 80% on credit. Sales In June were $53,500. All credit sales are collected in the month following the sale. The June 30 balance sheet Includes balances of $47,000 in cash and $4,400 In loans payable. A minimum cash balance of $47,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $47,000. 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 $47,000 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 ($3,400 per month), and rent ($5,900 per month). 2. 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. BUILT-TIGHT Cash Budget July August September Beginning cash balance $ 56,000 Add: Cash receipts 55,600 Total cash available 111,600 Less: Cash payments for Direct materials 15,560 Direct labor 3,440 Overhead Sales commissions Office salaries Rent 19,600 5,600 3,400 5,900 Interest on loan 44 Total cash payments 53,544 0 0 Preliminary cash balance 17,056 Loan activity Additional loan Repayment of loan to bank Ending cash balance 2,058 15,000 0 0 Loan balance July August September Loan balance - Beginning of month Additional loan (loan repayment) $ 4,400 S 6,458 2,056 Loan balance - End of month $ 6,458