Built-Tight is preparing its master budget for the quarter ended

Built-Tight is preparing its master budget for the quarter ended September 30. Budgeted sales

and cash payments for product costs for the quarter follow.

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; $4,500 in accounts payable; 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).

Prepare a cash budget for each of the months of July, August, and September. (Round

amounts to the dollar.)

Please explain your work in detail and provide in-text citations. Include the initial situation and

the initial assumptions in your answer. At least five (5) references are required among which

one should be the textbook as the source of the data.