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

payments LO P$2$

$[$The following information applies to the questions displayed below.$]$

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

Sales to customers are $20\%$ cash and $80\%$ on credit. Sales in June were $$53,000.$ All

credit sales are collected in the month following the sale. The June $30$ balance sheet

includes balances of $$49,000$ in cash and $$4,300$ in loans payable. A minimum cash

balance of $$49,000$ is required. Loans are obtained at the end of any month when the

preliminary cash balance is below $$49,000.$ 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 $$49,000$ 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

$($ $$3,300$ per month$),$ and rent $($ $$5,800$ per month$).$

Problem $20-2$A $($Algo$)$ Part $1$

Prepare a schedule of cash receipts for the months of July, August, and September.