('3 PR 22-4B Cash budget Obj. 5 The controller of Mercury Shoes Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following Ex\". budget information: Show Mo Haw June July August Sales ......................................... . ..... S 160,000 51 35,000 $200,000 Manufacturing costs ................... . ............. 66,000 32,000 105,000 Selling and administrative expenses .................. 40.000 46.000 51.000 Capital expenditures .................. . ............. 120,000 The company expects to sell about 10% ofits merchandise for cash. Of sales on account, 60% are expected to be collected in the month following the sale and the remainder the following month [second month after sale]. Depreciation, insurance, and property tax expense represent $12,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in February, and the annual property taxes are paid in November. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month