Cash Budget The controller 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 $131,000 $162.000 $211,000 Manufacturing costs 55,000 70,000 75,000 Selling and administrative 46,000 49,000 expenses 80,000 Capital expenditures 51,000 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 $10,000 or 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 which they are incurred and the balance in the following month. Current assets as of Septernber 1 include cash of $50,000, marketable securities of $71,000, and accounts receivable of $146,500 (531,500 frorn July sales and $115,000 from August sales). Sales on account for July and August were $105,000 and $115,000, respectively. Current liabilities as of September 1 include $10,000 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 $19,000 will be made in October. Bridgeport's regular quarterly dividend of $10,000 is expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of $49,000. Required: 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 Total cash receipts Less estimated cash payments for: du bo Noi Other purposes: Total cash payments CUSSY XPERICU w pomocou DURING Town Current assets as of Septernber 1 include cash of $50,000, marketable securities of $71,000, and accounts receivable of $146,500 (531,500 from July sales and $115,000 from August sales). Sales an account for July and August were $105,000 and $115,000, respectively. Ourrent liabilities as of September 1 include $10,000 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 $19,000 will be made in October. Bridgeport's regular quarterly dividend of $10,000 is expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of $49,000. Required: 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: Total cash receipts Less estimated cash payments for Other purposes 1) I I QUID Total cash payments Cash balance at end of month Excess or (deficiency) 2. On of the cash prepared in part (1), recommendatic should be made to the controller? The budget indicates that the minimum cash balance be maintained November. This situation can be corrected by such purposes. At the end of September and October, the cash balance will the minimum desired balance and/or by the of the marketable securities, if they are held for