Riley Corp. is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for merchandise for the next three months follow. Budgeted July August September Sales 72,450 84,250 62,350 Cash payments for merchandise 39,600 42,500 32,750 Sales are 20% cash and 80% 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; $45,000 in accounts receivable; $4,500 in accounts payable; and a $5,000 balance in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end of any month wher: a cash shortage occurs. Interest is 1.5% per month based on the beginning-of-the-month loan balance and is paid at each month-end. If any 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 ($4,000 per month), and rent ($6,500 per month). Use the information provided above to prepare a cash budget, and any necessary supplemental schedules. Then use the information above, your budget and your supplemental schedules to answer the following questions. Instructions: Answer each of the following questions by filling out the answer blanks below. There is one blank for each question. The answer for Question 1 goes in the first blank, for Question 2 in the second blank, and so on and so forth. Ensure that numerical responses are in comma format and are rounded to the nearest dollar. For example: 1; 50; 1,000; 150,000; 1,000,000; etc. Do not include symbols (i.e. $) or decimals in numerical answers. Other specific instructions might be present in the question, so make sure that you follow those as well if they are present. Failure to follow these instructions will result in answers being marked incorrect. While most answers will be numerical, some may be alphanumerical, meaning that you will include words and numbers. 1. How much cash is expected to be collected in July? 2. How much cash is expected to be collected in August? 3. How much cash is expected to be paid out in July? 4. How much cash is expected to be paid out in September? 5. How much interest is expected to be paid out in August? 6. What is the ending cash balance at the end of July? 7. What is the ending cash balance at the end of September? 8. How much of the loan can be paid back at the end of August