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 $\backslash (30\backslash \%\backslash )$ cash and $\backslash (70\backslash \%\backslash )$ on credit. Sales in June were $\backslash (\backslash$$ $62,000\backslash ).$ All credit sales are collected in the month following the sale. The June $30$ balance sheet includes balances of $\backslash (\backslash$$ $31,000\backslash )$ in cash and $\backslash (\backslash$$ $5,800\backslash )$ in loans payable. A minimum cash balance of $\backslash (\backslash$$ $31,000\backslash )$ is required. Loans are obtained at the end of any month when the preliminary cash balance is below $\backslash (\backslash$$ $31,000\backslash ).$ Interest is $\backslash (1\backslash \%\backslash )$ per month based on the beginning$-$of$-$the$-$month loan balance and is paid at each month$-$end. Any preliminary cash balance above $\backslash (\backslash$$ $31,000\backslash )$ is used to repay loans at month$-$end. Expenses are paid in the month incurred and consist of sales commissions $(\backslash (10\backslash \%\backslash )$ of sales$).$ office salaries $(\backslash (\backslash$$ $4\mathrm{.}800\backslash )$ per month$),$ and rent $(\backslash (\backslash$$ $7\mathrm{.}300\backslash )$ per month$).$

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

$1.$ Prepare a schedule of cash receipts for the months of July. August, and September. $\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multicolumn$\{4\}\{|$c$|\}\{$BUILT$-$TIGHT$\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{4\}\{|$c$|\}\{$Cash Budget$\}\backslash \backslash$

$\backslash$hline & July & August & September $\backslash \backslash$

$\backslash$hline Beginning cash balance & & & $\backslash \backslash$

$\backslash$hline $-$ & & & $\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{4\}\{|$l$|\}\{$Total cash available$\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{4\}\{|$l$|\}\{$Less: Cash payments for$\}\backslash \backslash$

$\backslash$hline $-$ & & & $\backslash \backslash$

$\backslash$hline & & & $\backslash \backslash$

$\backslash$hline $-$ & & & $\backslash \backslash$

$\backslash$hline $-$ & & & $\backslash \backslash$

$\backslash$hline $-$ & & & $\backslash \backslash$

$\backslash$hline $-$ & & & $\backslash \backslash$

$\backslash$hline $-$ & & & $\backslash \backslash$

$\backslash$hline Total cash payments & & & $\backslash \backslash$

$\backslash$hline Preliminary cash balance & & & $\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{4\}\{|$l$|\}\{$Loan activity$\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{4\}\{|$l$|\}\{$Additional loan$\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{4\}\{|$l$|\}\{$Repayment of loan to bank$\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$l$|\}\{$Ending cash balance$\}$ & & $\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{4\}\{|$c$|\}\{$Loan balance$\}\backslash \backslash$

$\backslash$hline & July & August & September $\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{4\}\{|$l$|\}\{$Loan balance $-$ Beginning of month$\}\backslash \backslash$

$\backslash$hline Additional loan $($loan repayment$)$ & & & $\backslash \backslash$

$\backslash$hline $|$Loan balance $-$ End of month & & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$