Cash Budget The controller of Mercury Shoes Inc. instructs you to prepare a monthly cash budget for the next three m June July August Sales $160,000 $185,000 $200,000 Manufacturing costs 66,000 82,000 105,000 Selling and administrative expenses 40,000 46,000 51,000 Capital expenditures 120,000 The company expects to sell about 10% of its merchandise for cash. Of sales on account, 60% are expec and property tax expense represent $12,000 of the estimated monthly manufacturing costs. The annuali 80% are expected to be paid in the month in which they are incurred and the balance in the following mo Current assets as of June 1 include cash of $42,000, marketable securities of $25,000, and accounts rece $150,000, respectively. Current liabilities as of June 1 include $13,000 of accounts payable incurred in Ma payment of $24,000 will be made in July, Mercury Shoes regular quarterly dividend of $15,000 is expect Required: 1. Prepare a monthly cash budget and supporting schedules for June, July, and August. Enter all amoun Mercury Shoes Inc Cash Budget For the Three Months Ending August 31 June July Estimated cash receipts from: Total cash receipts Less estimated cash payments for: OO DO Other purposes: cash budget for the next three months. You are presented with the following budget information: sales on account, 60% are expected to be collected in the month following the sale and the remainder the following month (second month after sale). Depreciation, Insurance, manufacturing costs. The annual insurance premium is paid in February, and the annual property taxes are paid in November of the remainder of the manufacturing costs, d the balance in the following month es of $25,000, and accounts receivable of $198.000 (5150,000 from May sales and $48,000 from April sales). Sales on account in April and May were $120,000 and accounts payable incurred in May for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax urly dividend of $15,000 is expected to be declared in July and paid in August. Management desires to maintain a minimum cash balance of $40,000. luly, and August. Enter all amounts as positive numbers except for Cash (decrease) and (deficiency). Use the minus sign to indicate an overall cash decrease and deficiency.