Book Show Me How Print Item Cash Budget 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 Sales $116,000 $142,000 $186,000 Manufacturing costs 49,000 61,000 67,000 Selling and administrative 41,000 43,000 71,000 expenses Capital expenditures 45,000 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 sale and the remainder the following month (second month following sale), Depreciation, insurance, and property tax expense represent $9,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in January, and the annual property taxes are pold in December. Or the remainder of the manufacturing costs, 80% are exposed 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 $44,000, marketable securities of $63,000, and accounts receivable of $129,900 (527,900 from July sales and $102,000 from August sales), Sales an account for July and August were $93,000 and $102,000, respectively. Current liabilities as of September 1 include 59,000 of accounts payable incurred in August for manufacturing costs. All selling and administrative expenses are paid in cash in the pen od they are incurred. An estimated Income tax payment of $17,000 will be made in October. Bridgeport's regular quarterly dividend of 89.000 is expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of $43,000. Required: 1. Prepare a monthly cash budget and supporting schedules for September October, and November, Assume 360 days per year for interest calculations Bridonnart Housewares The Check My Work Save and Exit Submit Assignment for Grading kassignment/takeAssignmentMain.do?invokerStakeAssignmentSession.ocator-&inprogress=false eBook Show Me How Print item 1. Prepare a monthly cash budget and supporting schedules for September, October, and November. Assume 360 days per year for interest calculations. Bridgeport Housewares Inc. Cash Budget For the Three Months Ending November 30 September October November Estimated cash receipts from: Cash sales 11.400 18.600 Collection of accounts receivable 99,300 103.60 14.200 120.780 110,900 117.80 13910 Total cash receipts Less estimated cash payments for: Manufacturing costs 41,000 49.400 Selling and administrative expenses 41.000 2.000 71.000 Capital expenditures 45,000 Other purposes Income tax 17.000 0.000 Dividends $1,000 10.00 IR. Total cash payments Cash increase or (decrease) 28.900 -41.20 71.900 X 1 x Plus cash balance at beginning of month Previous Next Check My Work Smittent for Grading Print Item eBook Show Me How Selling and administrative expenses Capital expenditures 41.000 491 71.000 45,000 Other purposes: Income tax 17,000 Dividends 9.000 83,000 109.600 181.800 28.900 8.280 -41,420 Total cash payments Cash increase or decrease) Plus cash balance at beginning of month Cash balance at end of month Less minimum cash balance 71,900 X 80,180 X 71,900 X 10,180 X 37,760 X 48, 40, 43,000 43,000 26,900 X 37.180X -5.240 x Excess or (deficient Feedback 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? Previous Check My Work