Cash Bucget The cantroller of Bridgeport Housewares Inc. instructs you to prepare a monthl' cash budget for the next three months. You are presented with the following budget information: The campany expects to sell about 10% of its merchand se for cash. Of sa es on accourt, 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 monthy manufatturin costs. The annual insurarca premium is paid in January, and the annual property taxes are paid in Decembe: 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 fallowing month. Current assets as of September 1 include cash of $56,000, marketable securities of $79,000, and accounts receivable of $164,400 i $35,400 from July sales and $129,000 trom August sales). Sales on account for July and August were $118,000 and $129,000, respectively. Current liabilities as of the period they are incurred. An estimated income tax payment of $22,000 will be made in October. Bridgeport's regular quarterly dividend of $5,000 is expected to be declared in October and paid in Ncvember. Management desires to maintain a minimum cash balance cf $55,000. Required: 1. Preaare a monthly cash budget and supporting schedules for September, Dctober, and November. Assume 360 days per year for interest calculations. 2. On the basis of the cash budge: prepared in part ( ), what recommendation should be made to the cortroller? The budget indicates that the minimum cash balance be maintained in November. This situat on can be corrected by and/or by the of the marketable securities, if they are neld for such purposes, At the end of September and Dctober, the cash balance wi the minimum desired balance