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 $117.000 $139,000 $190,000 Manufacturing costs 49,000 60,000 68,000 Selling and administrative expenses 41,000 42.000 72.000 Capital expenditures - 46,000 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 $10,000 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 $44,000,marketable securities of $63,000, and accounts receivable of $130,200 ($102,000 from July sales and $28.200 from August ). Sales on account for dy and August were 594,000 and $102,000, respectively. Current abilities as of September 1 include $10,000 of accounts payable incurred in August for manufacturing costs. Al selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of $17,000 will be made in October Bridgeport's regular Quarterly dividend of $10,000 is expected to be declared in October and pard in November. Management 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 30 days per year for interest calculations. Bridgeport Housewares Inc. Cash Budget For the Three Months Ending November 30 Estimated cash receipts from Les estimated cath payments for 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 Estimated the receipts from Lessesmated cash payments for Other purposes DUDIO 110 00 Total cash payments Cashblance end of month omsor (cc) can be corrected by 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 maand in November This e securities, if they are held for such purposes. At the end of September and October, the cash balance m Previous Next > Check My Won * GT Rome S A for Grad MacBook Pro Search or type URL