n/takeAssignment/takeAssignmentMando?in progress=true 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 $86,000 $90,000 $95,000 4,000 39,000 44,000 Sales Manufacturing costs Selling and administrative expenses 15,000 16,000 22,000 Capital expenditures 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 80,000 ) (second month following sale). Depreciation, insurance, and property tax expense represent $3,500 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, 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 May 1 include cash of $33,000, marketable securities of $40,000, and accounts receivable of $90,000($72,000 from April sales and $18,000 from March sales). Sales on account for March and April were $60,000 and $72,000, respectively. Current liabilities as of May 1 include $6,000 of accounts payable incurred in April for manufacturing costs. All selling and administrative expenses Check My Work10 more Check My Work uses remaining Previous Next 1:18 PM do)11/24/2017 e