Problem $20-2$A $($Algo$)$ Manufacturing: Cash budget and schedule of cash payments LO P$2$

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Built$-$Tight is preparing its master budget. Budgeted sales and cash payments follow:

July August September

Budgeted sales $ $61,000$ $ $77,000$ $ $51,000$

Budgeted cash payments for

Direct materials $16,76014,04014,360$

Direct labor $4,6403,9604,040$

Overhead $20,80017,40017,800$

Sales to customers are $30\%$ cash and $70\%$ on credit. Sales in June were $$60,500.$ All credit sales are collected in the month following the sale. The June $30$ balance sheet includes balances of $$27,000$ in cash and $$5,600$ in loans payable. A minimum cash balance of $$27,000$ is required. Loans are obtained at the end of any month when the preliminary cash balance is below $$27,000.$ Interest is $1\%$ per month based on the beginning$-$of$-$the$-$month loan balance and is paid at each month$-$end. Any preliminary cash balance above $$27,000$ 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$).$