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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
Budgeted sales	$	56,000		$	72,000		$	56,000
Budgeted cash payments for
Direct materials		15,560			12,840			13,160
Direct labor		3,440			2,760			2,840
Factory overhead		19,600			16,200			16,600

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; $44,400 in accounts receivable; $3,900 in accounts payable; and a $4,400 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 ($3,400 per month), and rent ($5,900 per month).

(2) Prepare a cash budget for each of the months of July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Enter your final answers in whole dollars.)

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BUILT-TIGHT Cash Budget For July, August, and September July August September Beginning cash balance $15,000 $15,000 $0 Cash receipts from customers 0 0 0 Total cash available Cash payments for: Direct materials 15,560 12,840 13,160 Direct labor 3,440 2,760 2,840 Overhead 19,600 16,200 16,600 Sales commissions 5,600 7,200 5,600 Office salaries 3,400 3,400 3,400 Rent 5,900 5,900 5,900 Total cash payments 53,500 48,300 47,500 Preliminary cash balance 0 0 0 Additional loan (loan repayment) 0 0 Ending cash balance 0 0 0 Loan balance July August September Loan balance - Beginning of month $4,400 Additional loan (loan repayment) 0 0 Loan balance - End of month

Answer 1