AutoSave CH 2 Spreadsheet 22.-E... Joanne Hollen - D 22-5A data.png File Home Insert Draw Page Layout Formulas Data Review View Help O Search bhotos + Add to TO E46 PR 22-5A Cash Budget F H J -- E 40.000 $ 131,000 (50,000) $ 81.000 $ 131,000 $ 163,500 (50,000) S 113.500 163,500 41,500 (50,000) (8,500) Obj. 5 The controller of Bridgeport Housewares Inc. instruct you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: 4 Salas Manufacturing costs Selling and administrative September $250,000 150,000 42,000 October $300,000 180,000 48,000 November $ $315,000 195,000 51,000 Capital expenditures 200,000 Sales on Account 20000000% September October Percentage 30% 70% 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 $50,000 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. D 32 h balance at beginning of month 33 h balance at end of month 34 imur cash balance 35 ess (deficiency) 38 37 38 39 Supporting calculations: 40 41 Collections of accounts receivable 42 43 44 July sales 45 August sales 46 Collected in September 47 Colected in October 48 September sales 19 Colected in October 50 Colected in November 51 October sales 52 Totals 53 54 Payments for manufacturing costs: 55 56 57 Paid in Soptember 58 Incurred in August 59 Incurred in September 60 Total 61 Paid in October 62 Incurred in September 63 Incurred in October 64 Total 65 Paid in November 68 Incurred in October 67 Incurred in November 66 Total 69 70 Costs on Account Percentage Payments Current assets as of September 1 include cash of $40,000, marketable securities of $75,000, and accounts receivable of $300,000 $60,000 from July sales and $240,000 from August sales). Sales on account for July and August were $200,000 and $240,000, respectively Current liabilities as of September 1 include $40,000 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 $55,000 will be made in October. Bridgeport's regular quarterly dividend of $25,000 is expected to be declared in October and paid in November Management desires to maintain a minimum cash balance of $50,000 Instructions 1. Prepare a monthly cash budget and supporting schedules for September, October, and November Answert Check Figure: November deficiency, 5(8,500) On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller? Pr. 22(8)-5A Enter Extend Splection BE 1009 1 O x 7:30 PM AutoSave CH 2 Spreadsheet 22.-E... Joanne Hollen - D 22-5A data.png File Home Insert Draw Page Layout Formulas Data Review View Help O Search bhotos + Add to TO E46 PR 22-5A Cash Budget F H J -- E 40.000 $ 131,000 (50,000) $ 81.000 $ 131,000 $ 163,500 (50,000) S 113.500 163,500 41,500 (50,000) (8,500) Obj. 5 The controller of Bridgeport Housewares Inc. instruct you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: 4 Salas Manufacturing costs Selling and administrative September $250,000 150,000 42,000 October $300,000 180,000 48,000 November $ $315,000 195,000 51,000 Capital expenditures 200,000 Sales on Account 20000000% September October Percentage 30% 70% 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 $50,000 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. D 32 h balance at beginning of month 33 h balance at end of month 34 imur cash balance 35 ess (deficiency) 38 37 38 39 Supporting calculations: 40 41 Collections of accounts receivable 42 43 44 July sales 45 August sales 46 Collected in September 47 Colected in October 48 September sales 19 Colected in October 50 Colected in November 51 October sales 52 Totals 53 54 Payments for manufacturing costs: 55 56 57 Paid in Soptember 58 Incurred in August 59 Incurred in September 60 Total 61 Paid in October 62 Incurred in September 63 Incurred in October 64 Total 65 Paid in November 68 Incurred in October 67 Incurred in November 66 Total 69 70 Costs on Account Percentage Payments Current assets as of September 1 include cash of $40,000, marketable securities of $75,000, and accounts receivable of $300,000 $60,000 from July sales and $240,000 from August sales). Sales on account for July and August were $200,000 and $240,000, respectively Current liabilities as of September 1 include $40,000 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 $55,000 will be made in October. Bridgeport's regular quarterly dividend of $25,000 is expected to be declared in October and paid in November Management desires to maintain a minimum cash balance of $50,000 Instructions 1. Prepare a monthly cash budget and supporting schedules for September, October, and November Answert Check Figure: November deficiency, 5(8,500) On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller? Pr. 22(8)-5A Enter Extend Splection BE 1009 1 O x 7:30 PM