Use the following information to prepare the September cash budget for PTO Company. Ignore the Loan activity section of the budget.

1. Beginning cash balance, September 1, $40,000.
2. Budgeted cash receipts from September sales, $255,000.
3. Direct materials are purchased on credit. Purchase amounts are August (actual), $80,000; and September (budgeted), $110,000. Payments for direct materials follow: 65% in the month of purchase and 35% in the first month after purchase.
4. Budgeted cash payments for direct labor in September, $40,000.
5. Budgeted depreciation expense for September, $4,000.
6. Budgeted cash payment for dividends in September, $20,000.
7. Budgeted cash payment for income taxes in September, $10,000.
8. Budgeted cash payment for loan interest in September, $1,000.

\begin{tabular}{|l|l|} \hline \multicolumn{2}{|c|}{ PTO COMPANY } \\ \hline \multicolumn{2}{|c|}{ Cash Budget } \\ \hline Beginning cash balance & \\ \hline & September \\ \hline Total cash available & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline Total cash payments & \\ \hline Ending cash balance & \\ \hline \end{tabular}