the controller of Scott homewares inc instructs you to prepare a monthly cash budget

View AutoSaver BESS Home Insert Draw Page Layout Formulas hva Garamond 12 AA Paste & BI U B a .A PS : x v fx Data = Review = = ? Wrap Text Merge & Center G H I J Excel 4 - Cash Budget The controller of Scon Homewares Inc. instructs you to prepare a monthly cash budget for the next three months, based on the following budget information Sales Manufacturing costs Selling and dim e Capital expenditures September $250,000 $150,000 542,000 October $300,000 $180,000 S48,000 November $315.000 $185.000 $51,000 $200,000 spen 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 male and the remainder the following month (second month following the sale) Depreciation, insurance and property tax expense represent $50,000 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 co, 80% are expected to be paid in the month in which they are incurred and the balance in the following month Current set as of September 1 include cash of $40,000, marketable securities of $75,000, and accounts receivable of $300,000 $60,000 from July sales and $240,000 from August sales Sales on account for July and August were $200,000 and $240,000, respectively. Current liabilities as of September 1 include $40,000 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 $55,000 will be made in October. Scot's regular quarterly dividend of $25,000 is expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of $50,000 Instructions 1) Prepare a monthly cash budget and supporting schedules for September, October, and November 2) On the basis of the cash budget prepared in Part 1, what feedback would you give the controller? Info Input Ready View Save OFF BE S U = e Insert Draw Page Layout Formulas Data Review Garamond 11 A A == BIU AA x x E F G H Excel 4 - Cash Budget Wrap Te Merge & Name: November Bridgeport Housewares Inc. Cash Budget For the Three Months Ending November 30 September October Estimated cash receipts from: Cash sales Collections from accounts receivable Total cash receipts Estimated cash payments for: Manufacturing costs Selling and administrative expenses Capital expenditures Other purposes Income tax Dividends Total cash payments Cash increase (decrease) Cash balance at beginning of month Cash balance at end of month Minimum cash balance Excess (deficiency) Supporting calculations: RE Excel 4 AutoSaveFF ome Insert Draw Page Layout Formulas Data Review View 9 Wrap Text General Garamond 11 AA EEE Pastes BIOA EE Merge & Center $ % aces deliciency) Supporting calculations Collections of accounts receivable September October November July sales Agata Collected in September Collected in October September sales Collected in October Collected in November October sales: Collected in October Totals Payments for manufacturing costs Paid in September Incurred in August Incurred in September Paid in October Incurred in September Incurred in October Tool Pald in November Incurred in October Incurred in November Key y wer here) Info Input Ready