OBJ.S Cash budget the next three months. You are presented with the following budget inform $185,000 82,000 46,000 PR 22-4B On The controller of Mercury Shoes Inc. instructs you to prepare a monthly cash h July June August $160,000 66,000 40,000 105,000 51,000 120,000 Of sales on ac- Sales Manufacturing costs Selling and administrative expenses Capital expenditures The company expects to sell about 10% of its merchandise for cash count, 60% are expected to be collected in the month following the sale and the remaind the following month (second month after sale). Depreciation, insurance, and propert tax expense represent $12,000 of the estimated monthly manufacturing costs. The an nual insurance premium is paid in February, and the annual property taxes are paid in November Of the remainder of the manufacturing costs, 80% are expected to be paid i the month in which they are incurred and the balance in the following month an- Current assets as of June 1 include cash of $42,000, marketable securities of $25 and accounts receivable of $198,000 ($150,000 from May sales and $48,000 from A sales). Sales on account in April and May were $120,000 and $150,000, respectivel Current liabilities as of June 1 include $13,000 of accounts payable incurred in May manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of $24,000 will be made in July Mercury Shoes' regular quarterly dividend of $15,000 is expected to be declared in July and paid in August. Management desires to maintain a minimum cash balance of $40,000 ,000 pril for Instructions 1. Prepare a monthly cash budget and supporting schedules for June, July, and August 2014 2. On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller