Required information

[The following information applies to the questions displayed below.] Built-Tight is preparing its master budget for the quarter ended September 30, 2017. Budgeted sales and cash payments for product costs for the quarter follow:

	July			August			September
Budgeted sales	$	58,500		$	74,500		$	53,500
Budgeted cash payments for
Direct materials		16,060			13,340			13,660
Direct labor		3,940			3,260			3,340
Factory overhead		20,100			16,700			17,100

Sales are 25% cash and 75% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $15,000 in cash; $44,900 in accounts receivable; and a $4,900 balance in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end of any month when a cash shortage occurs. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. If an excess balance of cash exists, loans are repaid at the end of the month. Operating expenses are paid in the month incurred and consist of sales commissions (10% of sales), office salaries ($3,900 per month), and rent ($6,400 per month).

(2) Prepare a cash budget for each of 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 September For July, August, and September July August Beginning cash balance $ 15,000 $ 15,000 Cash receipts from customers 59,525 62,500 Total cash available 74,525 77,500 40,125 Cash payments for: Direct materials 13,340 13,660 Direct labor 16,060 3,940 20,100 3,260 Overhead 16,700 3,340 17,700 5,350 Sales commissions 3,850 7,450 Office salaries 3,900 3,900 6,400 3,900 6,400 Rent 6,400 Interest on bank loan 49 0 Total cash payments 54,299 51,050 50,350 20,226 Preliminary cash balance Additional loan (loan repayment) Ending cash balance 20,226 0 0 Loan balance July August September $ 4,900 $ 4,900 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month $ 4,900