1. Prepare a monthly cash budget and supporting schedules for September, October, and November. Assume 360 days per year for interest calculations The controller of Bridgeport Housewares Inci instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budpet information: The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the femoinder the following month (second month following saie). Depreciation, insurance, and propecty tox expense represent $6,000 of the estimated monthiy manufacturing costs. The annual insurance premum is pald in January, and the annual property taxes are paid in December of the rertainder of the manufacturing costs, 80% are expected to be pald in the month in which they are incurred and the balance in the following month. Current assets as of September I include cath of $36,000, marketable securities of $1,000, and accounts receivable of $104,500 ( $22,500 from July sales and $2,000 from August sales). Sales on account for July and August were $75,000 and $82,000, respectively, Current liabilities as of September 1 include $6,000 of accounts payable incurred in August for manufacturing costs. All seling and administrative expenses are paid in cash in the period they are incurred. An estimated incoche tax payment of $14,000 will be made in October. Eridgeports regular quarterfy dividend of $6,000 is expected to be deciared in October and paid in November. Management desires to maintain a minimum cash balance of $35,000. Required: 1. Prepare a monthly cash budget and supporting schedules for September, Octobet, and November. Assume 360 days per year for interest calculations. 2. On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller? The budget ind cates thot the minimum cash oslance be maintained in November, This situbtion can be corrected oy by the of the marketable securities, if ther are held far such purposes. At thn end of september and October, the cash balance will the minimum desired balance