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:Line Item DescriptionSeptemberOctoberNovemberSales$$136,000$$$170,000$$$224,000$Manufacturing costs$57,00073,00081,000$Selling and administrative expenses$48,00051,00085,000$Capital expenditures $54,000$The company expects to sell about $10\%$ of its merchandise for cash. Of sales on account, $70\%$ are expected to be collected in the month following the sale and the remainder the following month $($second month following sale$).$ Depreciation, insurance, and property tax expense represent $$9,000$ 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 $$52,000,$ marketable securities of $$73,000,$ and accounts receivable of $$151,700($$$32,700$ from July sales and $$119,000$ from August sales$).$ Sales on account for July and August were $$109,000$ and $$119,000,$ respectively. Current liabilities as of September $1$ include $$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 $$20,000$ will be made in October. Bridgeports regular quarterly dividend of $$9,000$ is expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of $$51,000.$Required:Question Content Area$1.$ Prepare a monthly cash budget and supporting schedules for September, October, and November. Assume $360$ days per year for interest calculations.Bridgeport Housewares Inc.Cash BudgetFor the Three Months Ending November $30$Line Item DescriptionSeptemberOctoberNovemberEstimated cash receipts from:$$-$ Select $-$$$-$ Select $-$$$-$ Select $--$ Select $--$ Select $--$ Select $-$Total cash receipts$Total cash receipts$Total cash receipts$Total cash receiptsLess estimated cash payments for:$$-$ Select $-$$$-$ Select $-$$$-$ Select $--$ Select $--$ Select $--$ Select $--$ Select $-$Other purposes:$-$ Select $--$ Select $-$Total cash payments$Total cash payments$Total cash payments$Total cash payments$$-$ Select $-$$$-$ Select $--$ Select $--$ Select $--$ Select $--$ Select $-$Cash balance at end of month$Cash balance at end of month$Cash balance at end of month$Cash balance at end of month$-$ Select $--$ Select $--$ Select $-$Excess or $($deficiency$)$$Excess or $($deficiency$)$$Excess or $($deficiency$)$$Excess or $($deficiency$)$Question Content Area$2.$ 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 fill in the blank $1$ of $4$ be maintained in November. This situation can be corrected by fill in the blank $2$ of $4$ and$/$or by the fill in the blank $3$ of $4$ of the marketable securities$,$ if they are held for such purposes. At the end of September and October, the cash balance will fill in the blank $4$ of $4$ the minimum desired balance.