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BUILT-TIGHT Cash Receipts Budget For July, August, and September July August September Less: ending accounts receivable Cash receipts from: Total cash receipts 0 BUILT-TIGHT Cash Budget For July, August, and September July August September Beginning cash balance Total cash available Cash payments for: Total cash payments Preliminary cash balance 0 0 Ending cash balance 0 0 0 Loan balance August September July Loan balance Beginning of month Additional loan (loan repayment) Loan balance - End of month 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 $55,500 71,500 56,500 Budgeted sales Budgeted cash payments for Direct materials Direct labor Factory overhead 5,46012,74013,060 2,740 16,500 3,340 2,660 9,500 16,100 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; $44,300 in accounts receivable; $3,800 in accounts payable; and a $4,300 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 ($3,300 per month), and rent ($5,800 per month)

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