1. Prepare a monthly cast budpet and supportins schedules for Septrmber, October, and Novembec Acsume J60 days par yoar for interest calculations: The thimary seu te of estinsted cash recelpts is from cosh seles and collections on occount. 2. Cn be basks of the cash budgot prepsred in part (1), what recemmendation should be myde to the controter? se maintained in Neventet This wituation can be corredted by minmum dasired taitarte. Gath bubat: The controller of Bridgeport Housewares Ine. instructs you to prepare a monthly cash budget for the next three months, You are oresented with the following butiget intormation: The compiny expects to sel about 10% of is merchandise for cash. Of sales on account, rov are expected to be collected in the month folowno che sale and the remainder the folawing month (second month folsowing sale). Depreciation, insurance, and property tax expense represent $10,000 of the tstimated monkhly manulacturing costs. The anoual insurance premium is pais in Jenuary, and the annual property taves are pald in December of the remainder of the manufacturing Costs, BO% are expected to be pold is the month in which they are incurred and the basiance in the following month. $129.000 from August siles). Sales on account for July and August were $118,000 and $129,000, fespectively, Current liabilites as of September 1 inclide $10,000 of accounts poyable incurted in Asgut for monufocturing costs. All seling and administrative expenses are pald in cash in the period they are incurred, An entinated Maobgement dasires to maintain a minimum cash balance of $55,002. The primary source of estimated cash receipts is from cash sales and coliections on account To esimate cash receipts from cach cains and collections on account, a schedule of coloctions from sales is prepared. 2. On the basis of the cash bedget prepared in part (1), what recommendation shauld be made to the controler? The bud set indicotes that the minimum cash balance be maintanes in Norember. Tos stuation can be corrected by the of the marketable securilies, If they are held for such ourposen. At the end of september and October, the casin batance wilt: minimum desired balaoce. rcteck Hyw wos. Samtimes an it em mary be a decrease in one period tho an increase in a drfecont period. What weakneses are shown by this cath budyat