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:

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.

Required:

Prepare a monthly cash budget and supporting schedules for September, October, and November:

Bridgeport Housewares Inc.

For the Three Months Ending November $30$

Line Item Description September October November

Estimated cash receipts from:

Total cash receipts

On the basis of the cash budget prepared in part $(1),$ what recommendation should be made to the controller?

The budget indicates that the minimum cash balance