The controller of Shoe Mart Inc. asks you to prepare a monthly cash budget for the next three months. You are presented with the following budget information:

January February March

Sales $550,000 $570,000 $660,000

Manufacturing costs 260,000 330,000 420,000

Selling and administrative expenses 100,000 140,000 150,000

Capital expenditures -- -- 45,000

The company expects to sell about 20% of its merchandise for cash. Of sales on account, 75% 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 $40,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in June, and the annual property taxes are paid in October. Of the remainder of the manufacturing costs, 90% are expected to be paid in the month in which they are incurred and the balance is the following month. All sales and administrative expenses are paid in the month incurred.

Current assets as of January 1 include cash of $45,000, marketable securities of $65,000, and accounts receivable of $290,000 ($240,000 from December sales and $50,000 from November sales). Sales on account in November and December were $200,000 and $240,000, respectively. Current liabilities as of January 1 include a $50,000, 8%, 90-day note payable due March 20 and $18,000 of accounts payable incurred in December for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. It is expected that $20,000 in dividends will be received in January. An estimated income tax payment of $15,000 will be made in February. Shoe Marts regular quarterly dividend of $5,000 is expected to be declared in February and paid in March. Management desires to maintain a minimum cash balance of $35,000.

Instructions

1. Prepare a monthly cash budget and supporting schedules for January, February, and March.

2. On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller?

So my school doesn't have tutors for this, I can't afford a traditional tutor, and am having a horrible time with accounting. I've done some of this, based on a template from a similar question that I found here on Chegg. However, I've definitely made some mistakes regarding some of the numbers that I've entered, and don't know what I'm doing anyway, so will post what I have. Of course, it's possible that the template itself isn't exactly correct. Anyway, hopefully one of you will take the time to do this.

			January	February	March
Sales			550,000	570,000	660,000
Manufacturing costs			260,000	330,000	420,000
Selling and administrative expenses			100,000	140,000	150,000
Capital expenditures					45,000
			Sales
April			200,000
May			240,000
Cash budget			January	February	March
Cash sales			$550,000	$570,000	$660,000
Collections from account receivable			230,000	$472,500	$565,000
Dividends			20,000
Total cash receipts			800,000	1,042,500	1,225,000
Estimated cash payments
Manufacturing costs			-260,000	-330,000	-420,000
Selling and administrative expenses			-100,000	-140,000	-150,000
Capital expenditure					-45,000
Note payable including interest					-51,000
Income tax				-15,000
Dividend					-5000
Total cash payments			-360,000	-485,000	-671,000
Cash increase (decrease)			x	x	x
Cash balance beginning			x	x	x
Cash balance end			x	x	x
Minimum cash balance			x	x	x
Excess (deficiency)			x	x	x
Current assets		1-Jun
Cash		x
Marketable securities		x
Accounts receivable		x	x	Dec sales
			x	Nov sales	x
Current liabilities
Notes payable		x
Accounts payable		x	Incurred in Dec		x
Selling and administrative expenses paid in the month incurred
Dividend received in Jan		20,000
Tax payment in Feb		15,000
Dividend payment in Feb		5000
Minimum cash balance		x
Collections			January	February	March
Nov sales			50,000
Dec sales			180,000	x
Jan sales			x	x	x
Feb sales				x	x
March sales					x
Total collections			x	x	x
Cash collections			x	x	x
Cash from receivables			x	x	x
Manufacturing costs			260,000	330,000	420,000
Depreciation, property tax and ins			40,000	40,000	40,000
Net manufacturing costs			220,000	290,000	380,000
Dec costs			x
Jan costs			x	x
Feb costs				x	x
Mar costs					x
Total manufacturing payments			x	x	x