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:

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 $$10,000$ 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 $$49,000,$ marketable securities of $$70,000,$ and accounts receivable of $$145,200($ $$31,200$ from July sales and $$114,000$

from August sales$).$ Sales on account for July and August were $$104,000$ and $$114,000,$ respectively. Current liabilities as of September $1$ include $$10,000$ 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 $$20,000$ will be made in October. Bridgeport's regular quarterly dividend of $$10,000$ is expected to be declared in October and paid in November. Management

desires to maintain a minimum cash balance of $$48,000.$

Required:

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 Budget

For the Three Months Ending November $30$

Line Item Description

September

October

November

Estimated cash receipts from: