Can somebody please fill in the blanks on the spreadsheet and tell me how you got the answer correct? All the information is in the textbook pages I sent? please & thank you.

The controller of Mercury Shoes Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: Show Me How Excel Sales Manufacturing costs Selling and administrative expenses Capital expenditures June $160.000 66,000 40,000 $185.000 $2.000 46,000 August 5.200.000 105.000 51.000 120.000 The company expects to sell about 10% of its merchandise for cash Of sales on account, 60% are expected to be collected in the month following the sale and the remainder the following month (second month after sale). Depreciation, insurance, and property tax expense represent $12.000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in February, 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 June 1 include cash of $42.000, marketable securities of $25,000, and accounts receivable of $198,000 (S150,000 from May sales and $48,000 from April sales). Sales on account in April and May were $120,000 and $150,000, respectively. Current liabilities as of June 1 include $13,000 of accounts payable incurred in May for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of $24,000 will be made in July, Mercury Shoes regular quarterly dividend of $15,000 is expected to be declared in July and paid in August. Management wants to maintain a minimum cash balance of $40,000 The company expects to sell about 10% of its merchandise for cash Of sales on account, 60% are expected to be collected in the month following the sale and the remainder the following month (second month after sale). Depreciation, insurance, and property tax expertise resent $12,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in February, 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 June 1 include cash of $42,000, marketable securities of $25,000, and accounts receivable of $198,000 ($150,000 from May sales and $48,000 from April sales) Sales on account in April and May were $120,000 and $150,000, respectively. Current liabilities as of June 1 include $13,000 of accounts payable incurred in May for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of $24,000 will be made in July. Mercury Shoes regular quarterly dividend of $15,000 is expected to be declared in July and paid in August Management wants to maintain a minimum cash balance of $40,000 INSTRUCTIONS 1. Prepare a monthly cash budget and supporting schedules for June July, and August ANSWER On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller? August $ 20,000 SUM(number1, [number2), ...) 0,000 MERCURY SHOES INC. Cash Budget For the Three Months Ending June 30 June July Estimated cash receipts from: Cash sales $ 16.000 $ 18,500 Collections from accounts receivable =SUM(150000*60%+48000 Total cash receipts Estimated cash payments for Manufacturing costs Selling and administrative expenses 40,000 46,000 Capital expenditures Other purposes: Income tax 24,000 Dividends Total cash payments Cash increase (decrease) Cash balance at beginning of month 42,000 Cash balance at end of month Minimum cash balance 40,000 40,000 Excess (deficiency) 51,000 120,000 15,000 40,000 Supporting calculations: Collections of accounts receivable Sales on Account $ 120.000 July August Percentage 40% June 18,000 $ $ $ 90 000 150,000 150,000 60% 40% April sales May sales Collected in June Collected in July June sales Collected in July Collected in August July sales 60.000 60% 40% 60% 185.000 Payments for manufacturing costs Costs on Account Percentage Payments S 13,000 80% Paid in June Incurred in May incurred in June Total Paid in July Incurred in June incurred in July Total Paid in August Incuffedin July incurred in August Total 20% 30% 20% 8096 7 9