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 $124,000 $150,000 $211,000 Manufacturing costs 52,000 65,000 76,000 Selling and administrative expenses 36,000 41,000 46,000 Capital expenditures _ _ 112,000 The company expects to sell about 15% 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 $47,000, marketable securities of $67,000, and accounts receivable of $143,650 ($109,000 from April sales and $34,650 from March sales). Sales on account for March and April were $99,000 and $109,000, respectively. Current liabilities as of May 1 include $14,500 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 $18,000 will be made in June. Sonomas 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 $37,000. 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 977838fa701802b_1 18,600 $fill in the blank 977838fa701802b_2 22,500 $fill in the blank 977838fa701802b_3 31,650 Collection of accounts receivable fill in the blank 977838fa701802b_4 fill in the blank 977838fa701802b_5 fill in the blank 977838fa701802b_6 Total cash receipts $fill in the blank 977838fa701802b_7 $fill in the blank 977838fa701802b_8 $fill in the blank 977838fa701802b_9 Estimated cash payments for: Manufacturing costs $fill in the blank 977838fa701802b_10 $fill in the blank 977838fa701802b_11 $fill in the blank 977838fa701802b_12 Selling and administrative expenses fill in the blank 977838fa701802b_13 36,000 fill in the blank 977838fa701802b_14 41,000 fill in the blank 977838fa701802b_15 46,000 Capital expenditures fill in the blank 977838fa701802b_16 Other purposes: Income tax fill in the blank 977838fa701802b_17 Dividends fill in the blank 977838fa701802b_18 Total cash payments $fill in the blank 977838fa701802b_19 $fill in the blank 977838fa701802b_20 $fill in the blank 977838fa701802b_21 Cash increase or (decrease) $fill in the blank 977838fa701802b_22 $fill in the blank 977838fa701802b_23 $fill in the blank 977838fa701802b_24 Cash balance at beginning of month fill in the blank 977838fa701802b_25 fill in the blank 977838fa701802b_26 fill in the blank 977838fa701802b_27 Cash balance at end of month $fill in the blank 977838fa701802b_28 $fill in the blank 977838fa701802b_29 $fill in the blank 977838fa701802b_30 Minimum cash balance fill in the blank 977838fa701802b_31 fill in the blank 977838fa701802b_32 fill in the blank 977838fa701802b_33 Excess (deficiency) $fill in the blank 977838fa701802b_34 $fill in the blank 977838fa701802b_35 $fill in the blank 977838fa701802b_36 Question Content Area 2. The budget indicates that the minimum cash balance be maintained in July. This situation can be corrected 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. Feedback Area Feedback