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 $123,000 $151.000 $196,000 Manufacturing costs 52.000 65.000 71.000 Selling and administrative 43,000 45000 4,000 expenses Capital expenditures The company expect to a bout 10% of its merchandise for cash of sales on cont, 20 are expected to be collected in the month following the sale and the remainder the following month (second month followings) Depreciation Insurance and property tax expense represent $9.000 of the estimated monthly manufacturing costs. The annualinsurance premium is paid in January and the annual property taxes are paid in December of the remainder of the manufacturing costs, 30% are expected to be paid in the month in which they we incurred and the balance in the following month Current assets as of September 1 indude cash of 547,000,marketable securities of $66.000, and accounts receivable of $137.400 ($105.000 from July and $29.400 from August sales Sales on account for July and August were $98.000 and $100.000, respectively. Current l e s as of September 1 include 9.000 of accounts payable incurred in August for manufacturing costs. Al lling and administrative expenses are paid in cash in the period they are incurred in estimated income tax payment of $18,000 will be made in October Bedro's re a rterly dividend of $9.000 is expected to be declared in October and paid in November Management desires to maintain a minimum cash balance of $45,000 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. November For the Three Months Ending November 30 September October Estimated cash receipts from: Cash sales Collection of accounts receivable 11 000 DO Total cash receipts Less estimated cash payments for: Other purposes: Total cash payments dulu. Cash balance at end of month Excess or (deficiency) Cashb a nd of Ess ence 2. On basis of the cash bude prepared in part (1), what recommendation should be made to the controller? The budget indicates that the cash balance be mained in November This situation can be corrected by for such purposes at the end of September and Odobe the cash bace the minimum debate Com o