10,140 Problem 22-2B Manufacturing: Cash budget and schedule of cash payments P2 Al Manufacturing is preparing its master budget. Budgeted sales and cash payments follow. July August September Budgeted sales $63,400 $80,600 $48.600 Budgeted cash payments for Direct materials 9,900 Direct labor 8,450 Overhead Sales to customers are 20% cash and 80% on credit. Sales in June were $58,750. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $12,900 in cash and $2,600 in loans payable. A minimum cash balance of $12,600 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $12,600. 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 $12,600 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 ($4,600 per month), and rent ($7,100 per month). 1. Prepare a schedule of cash receipts for the months of July, August, and September. 2. Prepare a cash budget for the months of July, August, and September. Round interest payments to the dollar. 12,480 10,400 18,720 8,250 14,850 15,210