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 $$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 $$55,000,$ marketable securities of $$78,000,$

and accounts receivable of $$161,800($ $$34,800$ from July sales and $$127,000$ from August sales$).$

Sales on account for July and August were $$116,000$ and $$127,000,$ 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 $$22,000$ will be made in October. Bridgeport's

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 $$54,000.$

Required:

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

November. Assume $360$ days per year for interest calculations.