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 May June July Sales $99,000 $119,000 $161,000 Manufacturing costs 42,000 51,000 58,000 Selling and administrative expenses 29,000 32,000 35,000 Capital expenditures 39,000 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 anch following month (second month following sale). Depreciation, Insurance, and property tax expense represent $9,000 of the estimated monthly manufacturing Insurance premium is paid in September, and the annual property taxes are paid in November of the remainder of the manufacturing costs, 80% are expected month in which they are incurred and the balance in the following month Current assets as of May 1 include cash of $38,000, marketable securities of $53,000, and accounts receivable of $110,700 ($87,000 from April sales and $23,7 sales). Sales on account for March and April were 579,000 and $87,000, respectively. Current abilities as of May 1 include 513,000 of accounts payable incurrec manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of $14,000 will be Sonoma's regular quarterly dividend of $9,000 is expected to be declared in June and paid in July, Management wants to maintain a minimum cash balance of 53 Required: 1. Prepare monthly cash budget and supporting schedules for May June, and July toput all amounts as positive values except overall cash decrease and deficie be indicated with a minus sign ve HOW Sonoma Housewares Inc. Cash Budget For the Three Months Ending July 31 May June Estimated cash receipts from: Cash sales 9,900 11,900 Collection of accounts receivable 69,300 X July 16,100 Total cash receipts Estimated cash payments for: Manufacturing costs Selling and administrative expenses Capital expenditures Other purposes: Income tax todo lo di Dividends Total cash payments Cash increase or (decrease) Cash balance at beginning of month Cash balance at end of month Minimum cash balance OLI Excess (deficiency) 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 $99,000 $119,000 $161,000 Manufacturing costs 42,000 $1,000 58,000 Seling and administrative expenses 29,000 33.000 35,000 Capital expenditures 39,000 The company expects to sell about 10% of its roerchandise for Cash of sales on account, 70% are expected to be collected in the month following the sale and the remainder the folowing month (second month following sate). Depreciation, insurance, and property tax expense represent 89,000 of the estimated monthly manufacturing costs. The annual Insurance premums paid in September, and the annual property taxes are paid in November of the remainder of the manufacturing costs, 80% are expected to be paid in the
