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: Line Item Description September October November Sales $$123,000$ $$156,000$ $$200,000$ Manufacturing costs $52,00067,00072,000$ Selling and administrative expenses $43,00047,00076,000$ Capital expenditures $48,000$ The company expects to sell about $10\%$ of its merchandise for cash. Of sales on account, $70\%$ are expected to be collected in the month following the sale and the remainder the following month $($second month following sale$).$ Depreciation, insurance, and property tax expense represent $$7,000$ of 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 in which they are incurred and the balance in the following month. Current assets as of September $1$ include cash of $$47,000,$ marketable securities of $$66,000,$ and accounts receivable of $$137,400($$$29,400$ from July sales and $$108,000$ from August sales$).$ Sales on account for July and August were $$98,000$ and $$108,000,$ respectively. Current liabilities as of September $1$ include $$7,000$ 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 $$7,000$ is expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of $$46,000.$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 $30$ 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 $30$

$2.$ On the basis of the cash budget prepared in part $(1),$ what recommendation should be made to the controller?

The budget indicates that the minimum cash balance be maintained in November. This situation can be corrected by and$/$or by the of the marketable securities$,$ if they are held for such purposes. At the end of September and October, the cash balance will the minimum desired balance. 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:

manufacturing costs, $\backslash (80\backslash \%\backslash )$ are expected to be paid in the month in which they are incurred and the balance in the following month. $\backslash (\backslash$$ $32,000\backslash ).$

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 $30$

Other purposes: