about The controller of Sonoma Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: May June July 42,000 Sales $105,000 $131,000 $173,000 Manufacturing costs 44,000 56,000 62.000 Selling and administrative expenses 30,000 35.000 35,000 Capital expenditures 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 remainder the following month second month following sale) Depreciation, insurance, and property tax expense represent $6,000 of the estimated monthly manufacturing costs. The annual Insurance premium is paid in September, 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 Current assets as of May 1 Include cash of $40,000, marketable securities of $57,000, and accounts receivable of $117,200 (+92,000 from April sales and $25,200 from March sales) Sales on account for Match and April were $84,000 and $92.000, respectively. Current abilities as of May 1 include $14,500.0t accounts payable incurred in April for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated Income tax payment of 316,000 will be made in June. Sonoma's regular Quarterly dividend of $6,000 is expected to be declared in June and paid in July, Management wants to maintain a minimum cash balance of $31,000 Required: 1. Prepare a monthly cash budget and supporting schedules for May June and July. Input all amounts as positive values except overall cash decrease and deficiency which should be indicated with minus son Sonoma Housewares Inc. Cash Budget The Three Month Endin May June July Estimated cash receipts from: Cash sales 10,500 13,100 17,300 Collection of accounts receivable 89,600 79,050 X 86,240 X 100,100 Total cash receipts 92,150 X $ 103,540 Estimated cash payments for: Manufacturing costs 44,900 54,800 47,600 $ Selling and administrative expenses 30,000 38,000 35,000 Capital expenditures 42,000, Other purposes: Income tax 16,000 Dividends 6,000 74,900 98,600 140,800 Total cash payments Cash increase or (decrease) 25,200 $ Cash balance at beginning of month 40,000 65,200 Cash balance at end of month 65,200 V Minimum cash balance Excess (deficiency)