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 bu Information: September October November Sales $116,000 $142,000 $185,000 Manufacturing costs 49,000 61,000 67,000 Selling and administrative 41,000 43,000 expenses 71,000 Capital expenditures 45,000 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 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 manufactur costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month. Current assets al of September 1 Include cash of $44,000, marketable securities of $63,000, and accounts receivable of $129,900 ($27,900 from July sales and = from August sales), Sales on account for July and August were $93,000 and $102,000, respectively. Current liabilities as of September 1 include 59,000 of accoun 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 payment of $17,000 will be made in October, Bridgeport's regular quarterly dividend of $9,000 is expected to be declared in October and paid in November. Mana desires to maintain a minimum cash balance of 543,000. Required: 1. Prepare a monthly cash budget and supporting schedules for September, October, and November. Assume 360 days per year for interest calculations Bridaenort Housewares Inc Previous NO Check My Work Save and Et Submit Assignment for October 1. Prepare a monthly cash budget and supporting schedules for September October, and November. Assume 360 days per year for interest calculation Bridgeport Housewares Inc. Cash Budget For the Three Months Ending November 30 September November Estimated cash receipts from: 14,200 18,600 Collection of accounts receivable 103,680 120,780 Total cash receipts Less estimated cash payments for: Manufacturing costs Cash sales 11,600 99.300 110,900 117,880 139,380 41,000 49,640 V 56,800 Selling and administrative expenses 41,000 43,000 71.000 Capital expenditures 45,000 Other purposes: Income tax 1,000 Dividends 9.000 82,000 109,600 Total cash payments 181,000 X Cash increase or decrease) 2.900 8280 42,420 Previous Check My Work Sawan Stni Assen 110,900 117,880 139,380 Total cash receipts Less estimated cash payments for: Manufacturing costs 41,000 49,600 56,800 Selling and administrative expenses 41,000 43,000 THI , Capital expenditures 45,000 Other purposes Income tax Dividends 17,000 9,000 82,000 109,600 181,000 X 28,900 $ 8,280 -42,420 Total cash payments Cash increase or (decrease) Plus cash balance at beginning of month Cash balance at end of month Less minimum cash balance 43,000 X 71,900 X 80,180 X 71,900 X 80,180 x 37,760 X 43,000 43,000 43,000 28,900 X $ 37,180 XS -5.240 x Excess or deficiency) Feedback Check My Work The primary source of estimated cash receipts is from cash sales and collections on account. Cash Budget The controller of Bridgeport Housewares Inc. Instructs you to prepare a monthly canh budget for the next three months. You are presented with the following budget Information: A5,000 September October November Sales $116,000 $142,000 $186,000 Manufacturing costs 49,000 61,000 67,000 Selling and administrative 41,000 43,000 71,000 expenses Capital expenditures 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 59,000 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 or $4,000, marketable securities of $63,000, and accounts receivable of $129,900 (527,900 from July sales and $102,000 from August sales). Sales on account for July and August were $93,000 and $102,000, respectively. Current liabilities as of September 1 include 59,000 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 517,000 will be made in October. Bridgeport's regular quarterly dividend of $9,000 is expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of $43,000 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 Check My Work Save and Ex Submit Assignment for Grading All work saved www.signment sessionLocatorminprogress=false eBook Show Me How Print item 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: Cash sales 11,600 14,200 18,600 Collection of accounts receivable 99,300 103.60 120,780 Total cash receipts 110,906 117.880 V 139.30 Less estimated cash payments for: Manufacturing costs 41,000 49.600 56.100 Selling and administrative expenses 41,000 43.000 71.000 Capital expenditures 45,000 Other purposes: Income tax 19.000 Dividends 9,000 Total cash payments $2.000 109.600 181.00 28.900 20 -0.420 Cash increase or (decrease) Plus cash balance at beginning of month 43,000 X 71,900 X 0,150 X