The controller of Santa Fe Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: August September October Sales 630,000 715,000 845,000 Manufacturing Cost 350,000 360,000 410,000 Selling/Admin expenses. 170,000 205,000 235,000 Capital expenditures 150,000 The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in full in the month following the sale and the remainder the following month. Depreciation, insurance, and property tax expense represent 25,000 of the estimated monthly manufacturing cost. The annual insurance premium is paid in July, and the annual property taxes are paid in November. 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 August 1 include cash of 50,000, marketable securities of 85,000, and accounts receivable of 635,000 (500,000 from July sales and 135,000 from June sales) Sales on account for June and July were 450,000 and 500,000, respectively. Current liabilities as of August 1 include a 100,000, 15%, 90-day note payable due October 20 and 65,000 of accounts payable incurred n July for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. It is expected that 1,800 in dividends will be received in August. An estimated income tax payment of 39,000 will be made in September. Santa Fe's regular quarterly dividend of 12,000 is expected to be declared in september and paid in october. Management desires to maintain a minimum cash balance of 40,000. 1. Prepare a monthly cash budget and supporting schedules for August, September, and October. 2. On the basis of the cash budget prepared in part 1. what recommendation should be made to the controller? Thanks