Cash Budget The controller of Sonoma Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: May June July Sales $136,000 $173,000 $219,000 Manufacturing costs 57,000 74,000 79,000 Selling and administrative expenses 39,000 47,000 48,000 Capital expenditures 53,000 The company expects to sell about 15% 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 $8,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in September, and the annual property taxes are paid in November. Of the remainder of the manufacturing costs, 85% are expected to be paid in the month in which they are incurred and the balance in the following month. Current assets as of May 1 include cash of $52,000, marketable se

The controller of Sonoma Housewaresine instructs you to prepare a monthly cash budget for the next three months. You are rented with the origine May June July Sales $130,000 $175,000 $219,000 Manufacturing costs 57,000 74,000 79,000 Selling and administrative expenses 39,000 47,000 48,000 Capital expenditures 53,000 The company expects to sell about 15% of its merchandise for cach of sales en account, 70% are expected to be collected in the month following the sale and the commander the following month (second month following sale). Depreciation, insurance, and property tax expense represent: $8,000 of the cliented monthly manufacturing costs Thema insurance premium is paid in September, and the annual property taxes are paid in November of the minder of the manufacturing costs, 55 are expected to be paid in the month in which they are incurred and the balance in the following month Current assets as of May 1 indude cash of $52,000, marketable securities of $73,000, and accounts recewable of $151,700 5119,000 from Apniales and 3.700 rum March sales), Sales on account for March and April were $109,000 and $119,000, respectively. Current liabilitas of May include 512,500 of accounts payable incurred on to 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 te. Sonoma's regular quarterly dividend of $8,000 is expected to be dedared in June and paid in July, Management wants to maintainetinimum cach balance of 541,000 Required: 1. Prepare a monthly cash budget and supporting schedules for May, June, and July. Input all amounts as positive values except overall cash decrease and decency which would be indicated with a minus sign 1. Prepare a monthly cach budget and supporting schedules for May June, and July. Input all amounts as positive values except overall cash decrease in der wisho be indicated with a minus sign Sonoma Housewares Inc Cash Budget For the Three Months Ending July 31 May June July Estimated cash receipts from Cash sales Collection of accounts receivable Total cash receipts Estimated cash payments for Manufacturing costs Selling and administrative expenses Capital expenditures Other purposes Income tax Dividends 10 II I DI JUD DI ORDINI ODU Total cash payments Cash increase or decrease) Cash balance at beginning of month Cash balance at end of month Estimated cash payments fors Manufacturing costs Selling and administrative expenses Capital expenditures Other purposes Income Dividends Id ibido Obdo o 00 DDDDDDD Total cash payments Cash increase or decrease) Cash balance at beginning of month Cash balance at end of month Minimum cash balance Excess (deficiency)