The cantrolier of Bridgeport Housewares inc, instructs you to preplire a moothly cash budget for the next three months. You are presented wich the folldwing budges Intormation: The company expects to seil abouk 10 Wy of its merchandise for cash. Of sales on acoount, 70 as are expected to be collected in the month following the sale and the remsinder the following manth (second month following sale). Depreeistion, insurance, and property tax expense represenk s5,000 of the egtimated monthly manufactuging costs, The ahnual insurance premium is paid in January, and the annuat property taxei are poid in December. Or the remainder of the manufacturing coste 8.04 are expected to be paid in themonth in which they are incurred and the balanco in the following month. from August sales), Saies on account, for July and August were $71,000 and 578,000 , respectively, Current liabilieles as of September 1 include 56,000 of accounts payable incurred in Auphust for manufacturing costs. Al selling and administrative oxpentes are pald in cash in the period they are incurred. An estionated income tax. paryment of 513,000 will be made in October, Bridgeport's regular quarterly dividend of 56,000 is expected to be declared in October and paid in November. Monagement desires to maintain a minimuim cash bolance of 533,000 . 1. Prepare a manthly castr budget and supporting schedules for. Septeinber, October, and Novemben Assume 360 days per year for intertst calculations 2. On the basis of the cash budget pregared in part (1), What recommendabion should be inade to the controller? The budget-indicates that the minimam cash balance be maintained in November. This situabion can be corrected by andor by the of the marketable securties, if they are held for auch purposes. At the end of september and October, the cost balsnce will the minirmum dealred baiance: 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? 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 $6,000 of the estimated monthly. manufacturing costs. The annual insurance premlum 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 indude cash of $34,000, marketable securities of $48,000, and accounts receivable of $99,300 ( $21,300 from July sales and $78,000 from August sales). Sales on account for July and August were $71,000 and $78,000, respectively. Current llabilieies as of September 1 include $6,000 of accounts poyable 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 $13,000 will be made in October. Bridgeport's regular quarterly dividend of 56,000 is expected to be deciared in October and paid in November. Mariagement desires to maintain a minimum cash balance of $33,000. 1. Prepare a monthly cash budget and supporting schedules for September, October, and November, Assume 360 days per year for interest calculations. 2. On the basis of the cash budget prepared in part (1), what recommendotion should be made to the controller? The budget indicates that the minimam cash balance be maintained In Novemben. This situation can be corrected by by the of the marketable secunties, If they are held for such purposes. At the end of September and october, the cash balance wiil the minimum desired balance