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 $93,000 $114,000 $148,000 Manufacturing costs 39,000 49,000 53,000 Selling and administrative expenses 27,000 31,000 33,000 Capital expenditures 36,000 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 $9,000 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, 75 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 $35,000, marketable securities of $50,000, and accounts receivable of $106,900 ($81,000 from April sales and $25,900 from March sales) Sales on account for March and April were $74,000 and $81,000, respectively Current liabilities as of May 1 include $11,500 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 $14,000 will be made in June Sonomas regular quarterly dividend of $9,000 is expected to be declared in June and paid in July Management wants to maintain a minimum cash balance of $27,000 Required 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 $ $ $ Collection of 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 or (decrease) $ $ $ Cash balance at beginning of month Cash balance at end of month $ $ $ Minimum cash balance Excess (deficiency) $ $ $

Question

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 $93,000 $114,000 $148,000 Manufacturing costs 39,000 49,000 53,000 Selling and administrative expenses 27,000 31,000 33,000 Capital expenditures     36,000 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 $9,000 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, 75  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 $35,000, marketable securities of $50,000, and accounts receivable of $106,900 ($81,000 from April sales and $25,900 from March sales)  Sales on account for March and April were $74,000 and $81,000, respectively  Current liabilities as of May 1 include $11,500 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 $14,000 will be made in June  Sonomas regular quarterly dividend of $9,000 is expected to be declared in June and paid in July  Management wants to maintain a minimum cash balance of $27,000  Required  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 $ $ $ Collection of 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 or (decrease) $ $ $ Cash balance at beginning of month Cash balance at end of month $ $ $ Minimum cash balance Excess (deficiency) $ $ $

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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

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	May	June	July
Sales	$93,000	$114,000	$148,000
Manufacturing costs	39,000	49,000	53,000
Selling and administrative expenses	27,000	31,000	33,000
Capital expenditures	_	_	36,000

Sonoma Housewares Inc.
Cash Budget
For the Three Months Ending July 31
	May	June	July
Estimated cash receipts from:
Cash sales	$	$	$
Collection of 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 or (decrease)	$	$	$
Cash balance at beginning of month
Cash balance at end of month	$	$	$
Minimum cash balance
Excess (deficiency)	$	$	$