answer ones with red x marks

Cash Budg The controller of bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information September October November Sal $97,000 $125,000 $157,000 Manufacturing conta 41,000 54,000 57,000 Selling and administrative 34,000 38,000 69,000 expenses Capitalmxperdibures 38,000 The company expects to set 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 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. Current assets as of September 1 include cash of $37,000, marketable securities of $52,000, and accounts receivable of $108,400 (823,400 from July sales and 145,000 from August sales), Sales on account for July and Agent were $78,000 and $85,000, respectivele Current Sables as of September 1 include 16,000 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 15,000 will be made in October bridgeport's regular quarterly dividend of $6,000 is expected to be declared in October paid in November Management desires to maintain a minimum cash balance of $30,000 Required 1. Prepare a monthly cash budget and supporting schedules for September Octobec and November. Assume 360 days per year for interest calculations Bridgeport Housewares Inc. Cash Budget For the Three Honths Ending November 30 September October Estimated cash receipts from Cash sales Collection of accounts receivable 9.300 42.400 92.440 15.700 104.940 12.30 V BLA 19.310 Total cash receipts 170.440 Les estimated cash payments for 34,800 X 41400 ALAD Selling and administrative expenses 34000 38.000 40.000 Capital expenditures 18.000 Other purposes Income tax 15.000 Next Check My Work 34,000 38,000 Selling and administrative expenses V Capital expenditures Other purposes Income tax -V 15.000 Dividends Total cash payments 68000 X $4,400 X Cash increase or decrease) 21.000 X 4710 X 33.760 45.310 Plus cash balance at beginning of month 37.000 $0.800 X Cash balance at end of month 31.750 X 60.000 Xx 36.000 24.000 X- 45310 X 36.000 Less minimum cash balance 36.000 Excess or (deficiency) 29.310 X 4.250 + Check My Work The primary source of estimated cash receipts is from cash sales and collections on account to estimate cash receipts from cash sales and collections on account, a schedule of collections from sales is prepared. 2. On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller? The budget indicates that the minimum cash balance will not be maintained in November. This situation can be corrected by borrowing purposes. At the end of September and October, the cash balance will exceed the minimum desired balance TOwt My We 40.000 38.000 10.000 154,400 and/or by the sale of the marketable securities, if they are held for such