Built-Tight is preparing its master budget for the quarter endedSeptember 30. Budgeted sales and cash payments for product costsfor the quarter follow:

	July			August			September
Budgeted sales	$	64,000		$	80,000		$	48,000
Budgeted cash payments for
Direct materials		16,160			13,440			13,760
Direct labor		4,040			3,360			3,440
Factory overhead		20,200			16,800			17,200

Sales are 20% cash and 80% on credit. All credit sales arecollected in the month following the sale. The June 30 balancesheet includes balances of $15,000 in cash; $45,000 in accountsreceivable; $4,500 in accounts payable; and a $5,000 balance inloans payable. A minimum cash balance of $15,000 is required. Loansare obtained at the end of any month when a cash shortage occurs.Interest is 1% per month based on the beginning-of-the-month loanbalance and is paid at each month-end. If an excess balance of cashexists, loans are repaid at the end of the month. Operatingexpenses are paid in the month incurred and consist of salescommissions (10% of sales), office salaries ($4,000 per month), andrent ($6,500 per month).

2. Prepare a cash budget for each of the monthsof July, August, and September. (Negative balances and Loanrepayment amounts (if any) should be indicated with minussign. Enter your final answers in wholedollars.)

	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 Additional loan from bank Repayment of loan to bank Ending cash balance 0 0 0 . Loan balance July August September Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End ofmonth