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 $136,000 $170,000 $228,000 Manufacturing costs 57,000 73,000 82,000 Selling and administrative 48,000 51,000 expenses 87,000 Capital expenditures 55,000 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 50,000 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 months Current assets as of September 1 include cash of $52,000, marketable securities of $73,000, and accounts recevable of $151.700(532,700 from July sales and $119,000 from August sales), Sales on account for July and August were $109,000 and $119,000, respectively. Current abilities as of September 1 indude 58,000 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 $20,000 will be made in October Bridgeport's regular quarterly dividend of $8,000 is expected to be declared in October and paid in November. Management desires to maintain a minimum cast balance of 551.000 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: Cash sales 13,600 17.000 22,800 Collection of accounts receivable 116,000 143,820 Total cash receipts 129.600 138.380 166,620 Less estimated cash payments for: Manufacturing costs Selling and administrative expenses Capital expenditures Other purposes Income tax 1213807 Dividends Total cash payments Estimated cash receipts from: Cash sales Collection of accounts receivable 13,600 17.000 22,800 116,000 121,380 143,820 129,600 138,380 166,620 Total cash receipts Less estimated cash payments for: Manufacturing costs Selling and administrative expenses Capital expenditures Other purposes: Income tax Dividends II . I llllll III IIIIIII Total cash payments Cash increase or (decrease) Plus cash balance at beginning of month Cash balance at end of month Less minimum cash balance Excess or (deficiency)