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:

May June July

Sales $$107,000$ $$133,000$ $$182,000$

Manufacturing costs $45,00057,00066,000$

Selling and administrative expenses $31,00036,00040,000$

Capital expenditures $\_\_44,000$

The company expects to sell about $12\%$ of its merchandise for cash. Of sales on account, $65\%$ 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 $$10,000$ 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, $80\%$ are expected to be paid in the month in which they are incurred and the balance in the following month.

Current assets as of May $1$ include cash of $$41,000,$ marketable securities of $$58,000,$ and accounts receivable of $$124,100($$$94,000$ from April sales and $$30,100$ from March sales$).$ Sales on account for March and April were $$86,000$ and $$94,000,$ respectively. Current liabilities as of May $1$ include $$10,000$ 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 $$10,000$ is expected to be declared in June and paid in July. Management wants to maintain a minimum cash balance of $$32,000.$

Required:

Question Content Area

$1.$ Prepare a monthly cash budget and supporting schedules for May, June, and July. Input all amounts as positive values except overall cash decrease and deficiency which should be indicated with a minus sign.

Sonoma Housewares Inc.

Cash Budget

For the Three Months Ending July $31$

May June July

Estimated cash receipts from:

Cash sales $fill in the blank $713$ce$902607$afc$3\_1$

$fill in the blank $713$ce$902607$afc$3\_2$

$fill in the blank $713$ce$902607$afc$3\_3$

Collection of accounts receivable fill in the blank $713$ce$902607$afc$3\_4$

fill in the blank $713$ce$902607$afc$3\_5$

fill in the blank $713$ce$902607$afc$3\_6$

Total cash receipts $fill in the blank $713$ce$902607$afc$3\_7$

$fill in the blank $713$ce$902607$afc$3\_8$

$fill in the blank $713$ce$902607$afc$3\_9$

Estimated cash payments for:

Manufacturing costs $fill in the blank $713$ce$902607$afc$3\_10$

$fill in the blank $713$ce$902607$afc$3\_11$

$fill in the blank $713$ce$902607$afc$3\_12$

Selling and administrative expenses fill in the blank $713$ce$902607$afc$3\_13$

fill in the blank $713$ce$902607$afc$3\_14$

fill in the blank $713$ce$902607$afc$3\_15$

Capital expenditures fill in the blank $713$ce$902607$afc$3\_16$

Other purposes:

Income tax fill in the blank $713$ce$902607$afc$3\_17$

Dividends fill in the blank $713$ce$902607$afc$3\_18$

Total cash payments $fill in the blank $713$ce$902607$afc$3\_19$

$fill in the blank $713$ce$902607$afc$3\_20$

$fill in the blank $713$ce$902607$afc$3\_21$

Cash increase or $($decrease$)$ $fill in the blank $713$ce$902607$afc$3\_22$

$fill in the blank $713$ce$902607$afc$3\_23$

$fill in the blank $713$ce$902607$afc$3\_24$

Cash balance at beginning of month fill in the blank $713$ce$902607$afc$3\_25$

fill in the blank $713$ce$902607$afc$3\_26$

fill in the blank $713$ce$902607$afc$3\_27$

Cash balance at end of month $fill in the blank $713$ce$902607$afc$3\_28$

$fill in the blank $713$ce$902607$afc$3\_29$

$fill in the blank $713$ce$902607$afc$3\_30$

Minimum cash balance fill in the blank $713$ce$902607$afc$3\_31$

fill in the blank $713$ce$902607$afc$3\_32$

fill in the blank $713$ce$902607$afc$3\_33$

Excess $($deficiency$)$ $fill in the blank $713$ce$902607$afc$3\_34$

$fill in the blank $713$ce$902607$afc$3\_35$

$fill in the blank $713$ce$902607$afc$3\_36$