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 Sales $119,000 $140,000 $202,000 Manufacturing costs 50,000 60,000 73,000 Selling and administrative 42,000 42,000 77,000 expenses 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 $9,000 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, 809 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 Linclude cash of 545,000, marketable securities of $60,000, and accounts receivable of $132.500 28.500 ron and 5104,000 from August sales. Soles on account for July and August were $95.000 and 5104 000, respectively. Current lities as of September include 39,000 st sccounts payable incurred in August tor manufacturing costs All Selling and administrative expenses are paid in cash in the pen they are incurred. An estimated income tax payment of $17,000 will be made in October Bridgeport's regular quarterly dividend it $9.000 spected to be declared In October and pold in November Management desires to maintain a minimum ces balance of 549,000 Required: 1. Prepare a monthly cash budget and tupporting schedules for September October and No 360 dari berarte interest.com Bridgeport Housewares Inc Pre Next > Print Ilem Bridgeport Housewares Inc. Cash Budget For the Three Months Ending November 30 September October Estimated cash receipts from: November Total cash receipts Less estimated cash payments for: w VOJ O Other purposes Total cash payments Cash balance at end of month Less estimated cash payments for 89 Other purposes Total cash payments III. Cash balance at end of month Excess or (deficiency) 2. On the basis of the cash budget prepared in part (1), what recommendation should be made to the control The budget indicates that the minimum cash balance be maintained in November the situation can be corrected by and/or by the of the marketable securities, if they are held for sot purposes. At the end of September and October, the cash balance wall the minimum dested aloe