Cash budget The controller of Bridgeport Housemares Inc. Instructs you to prepare a manthly cash budget for the next three months. You are presented with the following budget information: The company expects to sell about 10% of its merchandise for cash. of sales on account, 70\%s are expected to be collected in the moneh following the sale and the remainder the following month (second month following sale). Depreciation, insurance, and property tax eapense represent s6, oco of the estimated monthy manufacturing costs. The annual insurance premium is paid in lanuary, and the annual property taxes are paid in December or the remainder of the manufacturing costs, 80 , are expected to be paid in the month in which ther are incurred and the balance in the following month. Current assets as of September 1 include cash of $49,000, marketable securties of 570,000 , and accounts receivable of 1143,900 (\$10,900 from July sales and $113,000 from August sales). Sales on account for July and Aupust were $103,000 and 5113,000 , respectively, Current sabilies as of 5eptember 1 indude $6,000 of accounta payable incurred in August for manufacturing costs. Mil seaing and administrative expenses are pald in cash in the period they are incurred. An estimated income tax payment of $16,000 will be made ia October. Bridgeport's regular quarterly divisend of $6,000 is expected to be deciared in october and paid in November. Management desires to maintain a minimum cash balance of 148,000 , Required 1. Prepare a manthly cash budget and supporting schedules for Septemser, October, and November. Assume 360 dars per rear for interest cakculabiont. Bridgeport Housewares Ine. Cash nudget SBook Gestres to matriam Me How Required: 1. Prepare a monthly cash budget and supporting schedules for September, October, and Novernber. Assume 360 days per year for interest calculations, 2. On the basis of the cash budget prepared in part (1), what recommendation should be made bo the coatrolar? The budget indicates that the minimum cash balence by the be maintained in Noirenter This stuaton can be cortetted by of the marketable securities, if they are held far wuch purposes. Af the evd of September and octobec, the cash baiance wil the minimum desired bulance