Cash Budget The controller of Mercury Shoes Inc. Instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: Sales Manufacturing costs Selling and administrative expenses Capital expenditures June July August $160,000 $185,000 $200,000 66,000 82,000 105,000 40,000 46,000 51,000 120,000. The company expects to sell about 10% of its merchandise for cash. Of 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, and property tax expense represent $12,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in Fruary, and the annual property taxes are paid in November. Of the remainder of the manufacturing costs, 80% are g month. expected to be paid in the month in which they a Chapter 22 Homework assignment take frame Current assets as of June 1 include cash of $42,000, marketable securities of $25,000, and accounts receivable of $198,000 ($150,000 from May sales and $48,000 from April sales). Sales on account in April and May were $120,000 and $150,000, respectively. Current liabilities as of June 1 include $13,000 of 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 payment of $24,000 will be made in July. Mercury Shoes' regular quarterly 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. Required: 1. Prepare a monthly cash budget and supporting schedules for June, July, and August. Mercury Shoes Inc. Cash Budget For the Three Months Ending August 31 June July August