The controller of Sonoma 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 seil about 12% of its merchandise for cash, of sales on account, 60%6 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 $8,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in September, and the annual property taxes are paid in November. Of the remainder of the manufacturing costs, 8046 are expected to be paid in thy month in which they are incurred and the balance in the following month. Current assets as of May 1 include cash of $41,000, marketable securities of $58,000, and accounts receivable of $128,400 ( $94,000 from April sales and $34,400 from March sales). Sales on account for March and April were $86,000 and $94,000, respectively. Current liabilities as of May 1 include $14,000 of accounts payable incurred in April for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of $16,000 will be made in June. Sonoma's regular quarterly dividend of $8,000 is expected to be declared in June and paid in July. Management wants to maintain a minimum cash balance of $32,000. Required: 1. Prepare a monthly cash budget and supporting schedules for May, June, and July, Input all amounti as positive values except overall cash decrease and deficiency which should be indicated with a minus sion. 1. Prepare a monthly cash budget and supporting schedules for May, June, and July, Input all amounts as positive values exce overall cash decrease and deficiency which should be indicated with a minus sign. Sonoma Housewares Inc. 2. The budget indicates that the minimum cash balance be maintained in July. This situation can be correcte by and/or by the of the marketable securities, if they are held for such purposes. At the end of May and June, the cash balance will the minimum desired balance