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 August $ 76,500 September $ 51,500 $ 60,500 Budgeted sales Budgeted cash payments for Direct materials Direct labor Overhead 16,860 4,740 20,900 14,140 4,060 17,500 14, 460 4,140 17,900 Sales to customers are 30% cash and 70% on credit. Sales in June were $61,000. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $29,000 in cash and $5,700 in loans payable. A minimum cash balance of $29,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $29,000. 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 $29,000 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 ($4,700 per month), and rent ($7,200 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.) BUILT-TIGHT September Cash Budget July $ 29,000 60,850 August $ 29,000 Beginning cash balance Add: Cash receipts 65,300 69,000 Total cash available 89,850 94,300 Less: Cash payments for Direct materials 16,860 14,140 14,460 Direct labor 4,740 4,060 Overhead 20,900 6,050 4,700 Sales commissions 4,140 17,900 5,150 4,700 17,500 7,650 4,700 7,200 Office salaries Rent 7,200 7,200 60,450 55,250 53,550 Total cash payments Preliminary cash balance Loan activity Additional loan Repayment of loan to bank Ending cash balance 0 0 0 Loan balance July August September Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month