The controller of Bnidgeport Housewares Inc, instructs you to prepare a monthly cash budget for the nert three months. You are presented with the foliowing bodget information: The company expects to sell about 10% of its merchandise for cash, of sales on account, 700 are expected to be collected in the month following the sale and the remainder the following month (second month following sale). Depreclation, insurance, and property tax expense represent s9,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in January, and the annual property taxes are paid in December. Of the remainder or 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 include cash of $48,000, marketable secunties of $59,000, and accounts receivabie of 5141,600 (\$111,000 from Juily sales and $30,600 from August sales). Sales on account for July and August were $102,000 and $111,000, respectively. Current labilies as of 5 eptember 1 include $9,000 of accounts payable 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 $19,000 will be made in October. Bridgeport's regular quarterly dividend of 39,000 is expected to be deciared in October and paid in November. Management desires to maintain a minimum cash balance of $47,000. Pequired 1. Prepare a monthy cash budget and supporting schedules for September, October, and November, Input all amounts as povitive values excent overail cash decrease and deficiency which should be indicated with a minus sign. Assume 360 days per year for interest calculations. 2. On the basis of the cash budget prepored in part {1}, what recommendation should be made to the controller? The bodget indicates that the minimum cash balance andior by the be malitained in Novemben This stuation can be corrected by of the marketable secuatios, if they are held for wich purpowes. At the end of september and October, the cash balance wil the minimum decired balance