Snap-Tight is preparing its master budget for the quarter ended September 30, 2021. Budgeted sales and cash payments

for product costs for 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 are collected in the month following the sale. The June 30 balance sheet

includes balances of $15,000 in cash; $45,000 in accounts receivable; and a $5,000 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 ($4,000 per month), and rent ($6,500 per month).

Required:

Prepare a cash receipts budget for July, August, and September.

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. For interest calculations, round your answers to the nearest whole dollar amount.)

SNAP-TIGHT

Cash Receipts Budget

For July, August, and September

July

August

September

Sales

Cash receipts from:

Total cash receipts

SNAP-TIGHT

Cash Budget

For July, August, and September

July

August

September

Beginning cash balance

Total cash available

Less: Cash payments for

Total cash payments

Preliminary cash balance

Loan activity:

Additional loan

(Repayment of loan to bank)

Ending cash balance

Loan balance

July

August

September

Loan balance - Beginning of month

Additional loan (loan repayment)

Loan balance - End of month