The controller Housewares Inc. instructs you to prepare a monthly cash budget for the next 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 $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 are paid in cash in the period they are incurred. An estimated income tax payment of $14,000 will be made in June. Sonoma\s regular quarterly dividend ol $5,000 is expected to be declared in June and paid in July. Management desires to maintain a minimum cash balance of $30,000. Instructions Prepare a monthly cash budget and supporting schedules for May, June, and July 2016. On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller? Budgeted income statement and balance sheet. As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal ve tr beginning January 1, 2017, the follow ing tentative trial balance as of December 31. 2016 is prepared by the Accounting Department of Regina Soap Co