May June July Estimated cash receipts from: Cash sales 9,900 11,900 $ 16,100 Collection of accounts receivable 84,600 107,100 X Total cash receipts 94,500 89,100 X Estimated cash payments for: Manufacturing costs Selling and administrative expenses Capital expenditures Other purposes Income tax DOU QI idud, Dividends Total cash payments Cash increase or (decrease) Cash balance at beginning of month Cash balance at end of month Minimum cash balance 38,000 30,000 30,000 30,000 Excess (deficiency SA Feedback 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 51,000 59,000 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 and the remainder the following month (second month following sale). Depreciation, insurance, and property tax expense represent $9,000 of the estimated monthly manufacturing costs. The annual Insurance premium is pard in September, and the annual property taxes e pond in November 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 sets of May 1 indude cash of 535,000, marketable securities of $53,000, and accounts receivable of $110,700 (587,000 from April sales and $23,700 from March sales). Sales on account for Marchand Apel were 579,060 and $87,000, respectively. Current bodies of May 1 include 513,000 of accounts payable incurred in April for manufacturing costs Aling and drive we paid in cash in the period they are curred. An estimated income tax payment of $4,000 will be made in ne Sonoma regular cuarterly dividend of 39,000 expected to be declared in and aduly Management wants to maintain a minimum cash balance of 530,000 Required 1. per monthly oh bodo od sporting schedules for May June, and trout all mountem puitive values except overal as decream and deficiency which should beint thin Old My Work