54 My Home X CengageNOV X Cal State App X M Mandeep-Chi x Apply for Aid x ) My Sac State X PortalGuard S * * Course Hero X + X F- CD A v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false TP AIM Chapter 22 eBook Show Me How Cash Budget ? 1. EX.22.02.ALGO The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the 2. EX.22.03.ALGO following budget information: September October November 3. EX.22.04.ALGO Sales $136,000 $174,000 $230,000 4. EX.22.05.ALGO Manufacturing costs 57,000 75,000 83,000 5. EX.22.06.ALGO Selling and administrative 48,000 52,000 87,000 expenses 6. EX.22.09.ALGO Capital expenditures 55,000 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 7. EX.22. 12.ALGO sale and the remainder the following month (second month following sale). Depreciation, insurance, and property tax expense represent $9,000 of the 8. EX.22.14.ALGO estimated monthly manufacturing costs. The annual insurance premium is paid in January, and the annual property taxes are paid in December. 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. 9. EX.22. 15.ALGO Current assets as of September 1 include cash of $52,000, marketable securities of $73,000, and accounts receivable of $151,700 ($32,700 from July sales and $119,000 from August sales). Sales on account for July and August were $109,000 and $119,000, respectively. Current liabilities as of 10. EX.22.17 ALGO September 1 include $9,000 of accounts payable incurred in August for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of $21,000 will be made in October. Bridgeport's regular quarterly dividend of $9,000 is 11. EX.22.19 ALGO expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of $51,000. 12. PR.22.05A.ALGO Required: 13. PR.22.06A.ALGO 1. Prepare a monthly cash budget and supporting schedules for September, October, and November. Assume 360 days per year for interest calculations. Progress: 12/13 items Check My Work 3 more Check My Work uses remaining.