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Required information (The following information applies to the questions displayed below.) Built-Tight is preparing its master budget. Budgeted sales and cash payments follow. 17,500 July

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Required information (The following information applies to the questions displayed below.) Built-Tight is preparing its master budget. Budgeted sales and cash payments follow. 17,500 July August September Budgeted sales $ 62,500 $ 78,500 $ 49,500 Budgeted cash payments for Direet materials 16,460 13,740 14,060 Direct labor 4,340 3,660 3,740 Overhead 20,500 17,100 Sales to customers are 25% cash and 75% on credit. Sales in June were $58,000. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $21,000 in cash and $5,300 in loans payable. A minimum cash balance of $21,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $21,000. 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 $21,000 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 (54,300 per month), and rent ($6,800 per month). 1. Prepare a schedule of cash receipts for the months of July, August, and September. BUILT-TIGHT Schedule of Cash Receipts from Sales July August September $ 62,500 $ 78,500 $+ 49.500 Sales Cash receipts from Total cash receipts Required information BUILT-TIGHT Cash Budget July August September Beginning cash balance + Total cash available Less: Cash payments for Total cash payments Preliminary cash balance Loan activity Additional loan Repayment of loan to bank Ending cash balance Loan balance July August September Loan balance - Beginning of month Additional loan (loan repayment) O Required information July August September Beginning cash balance Total cash available Less: Cash payments for 0 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

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