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The controller o Sonoma Housewares Inc. Instructs you to prepare a monthly cash budget for the three months. You are presented with the following budget

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The controller o Sonoma Housewares Inc. Instructs you to prepare a monthly cash budget for the three months. You are presented with the following budget Information: May July Sales $107.000 $138.000 $169,000 Manufacturing costs 45,000 59,000 61,000 Selling and administrative expenses 21,000 37.000 37.000 Capital expenditures 41.000 The company expects to sell about 15% 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. Depredation, Insurance and property tax excente represent $6,000 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 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 Indude cast of $41,000, marketable securities of 558,000, and accounts receivable of $119,800 (594,000 from April sales and $25,800 from March sales), Sales on account for Marchand oil were 66,000 and 994.000 respectively. Current abilities as of May 1 Indude $12,000 of accounts payabile incurred in Aptit for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated Income tax payment of $17,000 will be made in June. Sonoma's regular quarterly dividend of 56.000 is expected to be declared in June and puldin Buty Management wants to maintain a minimum cash balance of 532.000 Required: 1. Prepare a monthly cash budget and supporting schedules for May June and July. Input all amounts as positive values except overall cash decrease and deficiency which should be indicated with a minus sign Sonoma Housewares Inc Cash Budget For the Three Months Ending July 31 May June July Estimated cash recelts from Cash sales Collection of accounts receivable QOU DO lo CDO 100 Total cash receipts Estimated cash payments for Manufacturing costs Selling and administrative expenses Capital expenditures Other purposes Income tax Dividends Totalcash payment Cash intre or (decrease) Cash balance at beginning of month Cash balance at and of month Minimum cash balance Excess on Dulu - bed in this situation can be of the male secure they are held for themum direto 2. The budget indicates that the minimum cash balance corrected by and/or by the such purposes. At the end of May and in the cathew

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