The control of Mercury Shoes Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following buget information: Jund July August $160,000 $185,000 $200.000 Manufacturing costs 66,000 52.000 105,000 Setting and adurstrative expenses 40.000 46,000 51.000 Gependitures 120,000 the company expects to sell about 10% of its merchandise for cash. of sales on scount. 60% are expected to be collected in the month following the sale and the remainder the following month (second month utter 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 repaid 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 as of June 1 include cash of 542.000, marketable securities of $25,000, and accounts receivable of $199,000 (S150,000 from May sales and 548.000 from April sales). Sales account in An and May were $120.000 and $150,000, respectively. Current liabilities as of June 1 include $13,000 of accounts payable incurred in May for manufacturing costs. Alt selling and administrative expenses are ad cash in the penad they are incurred. An estimated income tax payment of 524,000 will be made in July. Mercury Shoes regular quarterly dividend of $15.000 expected to be dedared in July and paid in August Management wants to maintain a minimum cash balance of $40,000 Required: amounts as positive numbers except for Cash (decrease) and (deficiency). Use the minus sign to indicate an 1. Prepare a monthly cast budget and supporting schedules for June July, and August. Enter over there and deficiency Mercury Shoes Inc Cash Budget For the Three Months Ending August 31 overall cash decrease and deficiency Mercury Shoes Inc Cash Budget For the Three Months Ending August 31 June July Estimated cash receipts from: Cash sales Collection of accounts receivable August S Total cash receipts Estimated cash payments for Manufacturing costs Selling and administrative expenses Capital expenditures Other purposes Income tax Dividends Total cash payments Cash increase or (decrease) Cash balance at beginning of month achi halance at end of month Ched My Work All work saved. arch 3 994 HE 2 ts that the minimum cash balance be maintained in August. This situation can be corrected by ties, if they are held for such purposes. At the end of June and July the cash balance will the minimum desired balance and/or by the of the Previous All work saved Email Instructor Save and Exit Submit Assignment for Grading O 994 ENG 2:19 PM 12/3/2020