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 $ 58,000 August $ 74,000 September $ 54,000 Budgeted sales Budgeted cash payments for Direct materials Direct labor Overhead 15,960 3,840 20,000 13,240 3,160 16,600 13,560 3,240 17,000 Sales to customers are 25% cash and 75% on credit. Sales in June were $55,500. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $39,000 in cash and $4,800 in loans payable. A minimum cash balance of $39,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $39,000. 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 $39,000 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 ($3,800 per month), and rent ($6,300 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.) 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 Cash Budget July August $ 39,000 $ 39,000 56,125 September Beginning cash balance Add: Cash receipts 62,000 69,000 Total cash available 95, 125 101,000 Less: Cash payments for Direct materials 15,960 13,560 3,240 Direct labor 3,840 Overhead 17,000 20,000 5,800 13,240 3,160 16,600 7,400 3,800 6,300 Sales commissions 5,400 Office salaries 3,800 3,800 6,300 Rent 6,300 55,700 50,500 49,300 Total cash payments Preliminary cash balance Loan activity Additional loan 0 0 0 0 Repayment of loan to bank Ending cash balance 0 0 0 Loan balance July August September $ 4,800 Loan balance - Beginning of month Additional loan (loan repayment) (377) (4,423) Loan balance - End of month