Ciph oubget falance of $41,009 - Sonoena Housewares Inc. Castr Budqet Futimated cash teceipts from: Eash sates Collection of accounts rocervable Total cach iecects Etimuged cash meymierits lor: Minulecturing certs Selling and administrave expmtiel capital empenditires Other mupones thcome tan D.ridends Total cash piyments Cash ingrake or (decrease) Gavh batance of begumurg of moek Gash balance at end of month Muanian comi balance The fudget indestes Hiat the Finmaiw cavh buland if the makiatie the minmam deaired bolithet buitgetinformatich Thut comparir expects to sell about 15% of its merchandise for cash, Gf sales on account, 65% are expectod to be collected in the minth folioning the sale ahid the remainder the following month (second month following sale). Depreciation, imkurance, and property tax expense represent sH, ooo of the entimated monthily marnufacturing costs. The annual insurance premium is paid in Soptember, and the annual property taves are pald la November or the rermainder of the marufacturing costs, 80% bre expocted to be paid in the month in which they are incorled and the balance in the follewing mingite. Current atsets as of May 1 include cash of $53,000, alarketable secueitins of $75,000, and accounts receivabie of $160,850 (\$122,000 from ef accounts paysble incurred in April for manufacturing costs. Ali selling and administrat eve espenses are pad in cath in the peried they are incered. An Festimated incame tar payment of 121,000 whil be made an June Sonoma s regular qoacterly dividend of \&s, 6oo is expected to be deciared in zune and Baid an fuly. Marsgembet wants to maintain a minimumt cash baience of s41,000. Sonoma Housewares Inc. Cash Budget For the Three Months Ending July 31 Estimated cash receipts from: Cash sales Collection of accounts recelvable Total cash receipts Estimated cash payments for: Manufacturing costs Selling and administrative expenses Capital expenditures Other purposes: income tax Dividends Total cash payments Cash increase or (decrease) Cash balance at beginning of month Cash balance at end of month Minimum cash balance Excess (deficiency) 2. The budget indicates that the minimum cash balance be maintained in July. This situation can be corrected by and/or by the the cash batance will the minimum desired balance