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The controller of Mercury Shoes Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: The company expects to sell about 10% of its merchandise for cash. Of sales on account, 60% are expected to be collected in the month following the sale and the remainder the following month (second month after sale). Depreciation, insurance, and property tax expense represent $12,000 of the estimated monthly manufacturing costs. The annual 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 in the month in which they are incurred and the balance in the following month. Current assets as of June 1 include cash of $42,000, marketable securities of $25,000, and accounts receivable of $198,000 ( $150,000 from May sales and $48,000 from April sales). Sales on account in April and May were $120,000 and $150,000, respectively. Current liabilities as of June 1 include $13,000 of iccounts payable incurred in May for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An stimated income tax payment of $24,000 will be made in July. Mercury Shoes' regulor quarterly dividend of $15,000 is expected to be declared in July and aid in August. Management desires to maintain a minimum cash balance of $40,000. Cash Budget For the Three Months Ending August 31 Estimated cash receipts from: Manufacturing costs Capital expenditures Income tax Cividends Cash increase or (decrease) Plus cash balance at beginning of month Cash balance at end of month Less minimum cash balance Other purposes: Cash balance at end of month Excess or (deficiency) Cash Budget For the Three Months Ending August 31 Other purposes: Total cash payments Cash balance at end of month Excess or (deficiency) The controller of Mercury Shoes Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: The company expects to sell about 10% of its merchandise for cash. Of sales on account, 60% are expected to be collected in the month following the sale and the remainder the following month (second month after sale). Depreciation, insurance, and property tax expense represent $12,000 of the estimated monthly manufacturing costs. The annual 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 in the month in which they are incurred and the balance in the following month. Current assets as of June 1 include cash of $42,000, marketable securities of $25,000, and accounts receivable of $198,000 ( $150,000 from May sales and $48,000 from April sales). Sales on account in April and May were $120,000 and $150,000, respectively. Current liabilities as of June 1 include $13,000 of iccounts payable incurred in May for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An stimated income tax payment of $24,000 will be made in July. Mercury Shoes' regulor quarterly dividend of $15,000 is expected to be declared in July and aid in August. Management desires to maintain a minimum cash balance of $40,000. Cash Budget For the Three Months Ending August 31 Estimated cash receipts from: Manufacturing costs Capital expenditures Income tax Cividends Cash increase or (decrease) Plus cash balance at beginning of month Cash balance at end of month Less minimum cash balance Other purposes: Cash balance at end of month Excess or (deficiency) Cash Budget For the Three Months Ending August 31 Other purposes: Total cash payments Cash balance at end of month Excess or (deficiency)