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	$126,000		$150,000		$202,000
Manufacturing costs	53,000		65,000		73,000
Selling and administrative expenses	44,000		45,000		77,000
Capital expenditures	_		_		48,000

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 $48,000, marketable securities of $68,000, and accounts receivable of $140,300 ($30,300 from July sales and $110,000 from August sales). Sales on account for July and August were $101,000 and $110,000, 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 $18,000 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 $47,000.

Required:

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 Budget
For the Three Months Ending November 30
	September	October	November
Estimated cash receipts from:
	$fill in the blank 30bfd5fd4f9e00f_2	$fill in the blank 30bfd5fd4f9e00f_3	$fill in the blank 30bfd5fd4f9e00f_4
	fill in the blank 30bfd5fd4f9e00f_6	fill in the blank 30bfd5fd4f9e00f_7	fill in the blank 30bfd5fd4f9e00f_8
Total cash receipts	$fill in the blank 30bfd5fd4f9e00f_9	$fill in the blank 30bfd5fd4f9e00f_10	$fill in the blank 30bfd5fd4f9e00f_11
Less estimated cash payments for:
	$fill in the blank 30bfd5fd4f9e00f_13	$fill in the blank 30bfd5fd4f9e00f_14	$fill in the blank 30bfd5fd4f9e00f_15
	fill in the blank 30bfd5fd4f9e00f_17	fill in the blank 30bfd5fd4f9e00f_18	fill in the blank 30bfd5fd4f9e00f_19
			fill in the blank 30bfd5fd4f9e00f_21
Other purposes:
		fill in the blank 30bfd5fd4f9e00f_23
			fill in the blank 30bfd5fd4f9e00f_25
Total cash payments	$fill in the blank 30bfd5fd4f9e00f_26	$fill in the blank 30bfd5fd4f9e00f_27	$fill in the blank 30bfd5fd4f9e00f_28
	$fill in the blank 30bfd5fd4f9e00f_30	$fill in the blank 30bfd5fd4f9e00f_31	fill in the blank 30bfd5fd4f9e00f_32
	fill in the blank 30bfd5fd4f9e00f_34	fill in the blank 30bfd5fd4f9e00f_35	fill in the blank 30bfd5fd4f9e00f_36
Cash balance at end of month	$fill in the blank 30bfd5fd4f9e00f_37	$fill in the blank 30bfd5fd4f9e00f_38	$fill in the blank 30bfd5fd4f9e00f_39
	fill in the blank 30bfd5fd4f9e00f_41	fill in the blank 30bfd5fd4f9e00f_42	fill in the blank 30bfd5fd4f9e00f_43
Excess or (deficiency)	$fill in the blank 30bfd5fd4f9e00f_44	$fill in the blank 30bfd5fd4f9e00f_45	$fill in the blank 30bfd5fd4f9e00f_46

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 be maintained in November. This situation can be corrected by and/or by the of the marketable securities, if they are held for such purposes. At the end of September and October, the cash balance will the minimum desired balance.