The information for preparing the monthly cash budget of Sonoma Housewares Inc.

is shown. A table with four columns shows the headings as follows: no heading in the

first column, May, June, and July are set in bold. There is a single rule under these

headings. The data for the corresponding three months are as follows: For Sales, May

$$86,000$; June $$90,000$; July $$95,000.$ For manufacturing costs, May $34,000$ ; June $39,000$;

July $44,000.$ For selling and administrative expenses, May $15,000$; June $16,000$; July

$22,000.$ For capital expenditures, July $80,000.$

The company expects to sell about $10\%$ of its merchandise for cash. Of sales on account,

$70\%$ 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 $$3,500$ 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.