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 $110.000 $134,000 $183,000 Manufacturing costs 46,000 58,000 66,000 Selling and administrative 39,000 40,000 70,000 expenses Capital expenditures 44,000 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, 30% 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 542,000, marketable securities of $59,000, and accounts receivable of $122.400 (526,400 from July sales and $96,000 from August sales). Sales on account for July and August were $85,000 and 596,000, 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 $16,000 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 541,000 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. Cash Budget For the Three Months Ending November 30 September October November Estimated cash receipts from: Less cash balance at beginning of month X 42,000 X 569.400 X 76,300 X Estimated cash receipts from: Less cash balance at beginning of month X 42.000 69,400 76,300 X Cash increase or (decrease) x 11,000 X 13,400 18,300 x 67,200 X 569,300 X 5 84,420 Total cash receipts Less estimated cash payments for: Dividends X 26400 X 5 28.800 X 29,700 X Selling and administrative expenses 146,600 180.900 208,720 X Income tax x 47.200 X Other purposes Dividends X 40.800 X Capital expenditures x 10,200 X 7.000 x Total cash payments Capital expenditures x Cash increase or (decrease) X 44,000 X 77,200 X 104,600 X 178,400 X 69.400 76,300 30,320 Cash balance at end of month Plus minimum cash balance X 41.000 41.000 41,000 28.400 35,300 -10.680 Excess or (deficiency) 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 $110,000 $134,000 $183,000 Manufacturing costs 46,000 58,000 66,000 Selling and administrative 39,000 40,000 70,000 expenses Capital expenditures 44,000 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 his of September 1 include cash of $42,000, marketable securities of $59,000, and atcounts receivable of $122,400 ($26,400 from July sales and $96,000 from August sales). Sales on account for July and August were $60,000 and $96,000, 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 $16,000 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 $41,000. 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. Cash Budget For the Three Months Ending November 30 September October November Estimated cash receipts from: Less cash balance at beginning of month X 42.000 X 69.400 X 5 76,300 X Cash increase or (decrease) x 11.000 X 13.400 x 18.300 X Previous Link uses remaining Submit Ass Less cash balance at beginning of month x Cash increase or decrease) x 42,000 X 69,400 X 76,300 X 11,000 13,400 18,300 67,200 69,300 X 5 84.420 X Total cash receipts Less estimated cash payments for: Dividends X 26,400 X s 28,800 X 29,700 X Selling and administrative expenses 146,600 X 180,900 X 208,720 X Income tax X 47,200 X Other purposes: Dividends X 40,800 Capital expenditures x 10,200 X 7,000 X