Managerial Accounting

Total cash payments 82,200 106,800 184,400 X $ 29,100 11,410 46,240 X 44,000 73,100 84.510 Cash balance at end of month 73,100 84,510 38,270 X 43,000 43,000 43,000 Excess or (deficiency) $ 30,100 41,510 -4,730 XCash Budget The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: September October November Sales $117,000 $139,000 $192,000 Manufacturing costs 49,000 60,000 69,000 Selling and administrative 41,000 42,000 73,000 expenses Capital expenditures 46,000 The company expects to sell about 10% of its merchandise for cash. 0f 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 $10,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in January, and the annual property taxes are paid in December. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month. Current assets as of September 1 include cash of $44,000, marketable securities of $63,000, and accounts receivable of $130,200 ($28,200 from July sales and $102,000 from August sales). Sales on account for July and August were $94,000 and $102,000, respectively. Current liabilities as of September 1 include $10,000 of accounts payable incurred in August for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of $17,000 will be made in October. Bridgeport's regular quarterly dividend of $10,000 is expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of $43,000. Required: 1. Prepare a monthly cash budget and supporting schedules for September, October, and November. Assume 360 days per year for interest calculations. Bridgeport Housewares Inc. Cash Budget For the Three Months Ending November 30 September October November ._ v s- ._ r 99,000 vi 104,310 1" 119,100 J Total cash receipts $ 111,300 J $ 110,210 of $ 138,360 1.! Less estimated cash payments for: Estimated cash receipts from: $[ 41,200] J $l 47,000| J $[ 59,000] X 41,000 1/ 42,000 J 72,000 x 45,000 J Other purposes