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The treasurer of Whitmore Company wants you to prepare a monthly cash budget for the last Six months of the current year. You are presented

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The treasurer of Whitmore Company wants you to prepare a monthly cash budget for the last Six months of the current year. You are presented with the following budget information: Sales Manufacturing costs Selling/Admin. expenses Capital expenditures July $490,000 159,000 198,000 Aug. $425,000 176,000 210,000 Sept. $368,000 164,000 64,000 175,000 Oct. $360,000 157,000 102,000 Nov. $375,000 172,000 86,000 189,000 Dec. $410,000 166,000 146,000 304,000 The company expects to sell about 25% of its merchandise for cash. Of sales on account, 70% are expected to be collected in full in the month following the sale and the remainder the following month. Depreciation, insurance, and property tax expense represent $30,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in February, and the annual property taxes are paid in March. 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 July 1"include cash of $40,000 and accounts receivable of $480,000 ($360,000 from June sales and $120,000 from May sales). Current liabilities as of July 1"include a $140,000, 7 14%, 270-day note payable due October 150 and $54,000 of accounts payable incurred in June for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. It is expected that $4,100 in dividends will be received in September and December. An estimated income tax payment of $48,000 will be made in November Messo's regular quarterly dividend of S10.500 is expected to be declared in May, July. September, and November and paid in June, August, October, and December. Management desires to maintain a minimum cash balance of $50,000. Instructions: Using the schedules on pages 3a and 3b, prepare a monthly cash budget and supporting schedules for the months of July - December

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