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:

	September		October		November
Sales	$133,000		$166,000		$213,000
Manufacturing costs	56,000		71,000		77,000
Selling and administrative expenses	47,000		50,000		81,000
Capital expenditures	_		_		51,000

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 premium 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 include cash of $51,000, marketable securities of $72,000, and accounts receivable of $147,800 ($31,800 from July sales and $116,000 from August sales). Sales on account for July and August were $106,000 and $116,000, respectively. Current liabilities as of September 1 include $6,000 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 $20,000 will be made in October. Bridgeports regular quarterly dividend of $6,000 is expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of $50,000.

Bridgeport Housewares Inc. Cash Budget For the Three Months Ending November 30 September October November Estimated cash receipts from: Cash sales 13,300 $ 16,600 $ 21,300 Collection of accounts receivable 113,000 118,590 140,490 Total cash receipts 126,300 $ 135,190 $ 161,790 Less estimated cash payments for: Manufacturing costs 46,000 62,000 69,800 Selling and administrative expenses 47,000 50,000 81,000 Capital expenditures 51,000 Other purposes: Income tax 20,000 Dividends 6,000 93,000 132,000 207,800 Total cash payments Cash increase or (decrease) 33,300 3,190 46,010 Plus cash balance at beginning of month 59,700 x 13,510 X Cash balance at end of month $ 13,510 X $ Total cash payments 93,000 132,000 $ 207,800 Cash increase or (decrease) 33,300 3,190 46,010 Plus cash balance at beginning of month 59,700 13,510 Cash balance at end of month $ 13,510 Less minimum cash balance 50,000 50,000 50,000 Excess or (deficiency) 13,510 $