Journalize the entries
Cash Budget
The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information:
| September | October | November | ||||
| Sales | $98,000 | $122,000 | $164,000 | |||
| Manufacturing costs | 41,000 | 52,000 | 59,000 | |||
| Selling and administrative expenses | 34,000 | 37,000 | 62,000 | |||
| Capital expenditures | _ | _ | 39,000 | |||
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 $10,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in January, and the annual property taxes are paid in December. 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 September 1 include cash of $37,000, marketable securities of $53,000, and accounts receivable of $109,400 ($86,000 from July sales and $23,400 from August sales). Sales on account for July and August were $78,000 and $86,000, respectively. Current liabilities as of September 1 include $10,000 of accounts payable incurred in August for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of $15,000 will be made in October. Bridgeport’s regular quarterly dividend of $10,000 is expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of $36,000.
Required:
1. Prepare a monthly cash budget and supporting schedules for September, October, and November. Input all amounts as positive values except overall cash decrease and deficiency which should be indicated with a minus sign. Assume 360 days per year for interest calculations.
| Bridgeport Housewares Inc. | |||
| Cash Budget | |||
| For the Three Months Ending November 30 | |||
| September | October | November | |
| Estimated cash receipts from: | |||
| Total cash receipts | |||
| Less estimated cash payments for: | |||
| Other purposes: | |||
| Total cash payments | |||
| Cash balance at end of month | Homework Answers
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Cash Budget The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: September October November Sales $137,000 58,000 $173,000 74,000 $226,000 81,000 Manufacturing costs Selling and administrative expenses 48,000 52,000 86,000 Capital expenditures 54,000 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...
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The controller of Bridgeport Housewares Inc. instructs you to
prepare a monthly cash budget for the next three months. You are
presented with the following budget information: September October
November Sales $114,000 $140,000 $189,000 Manufacturing costs
48,000 60,000 68,000 Selling and administrative expenses 40,000
42,000 72,000 Capital expenditures _ _ 45,000 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...
can you please show the work
as well.
Cash Budget The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: September October November Sales $111,000 $132,000 $179,000 Manufacturing costs 47,000 57,000 64,000 Selling and administrative 39,000 40,000 68,000 expenses Capital expenditures 43,000 The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be...
Cash Budget The controller of Bridgeport Housewares Inc. Instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: September October November Sales $142,000 $178,000 $231,000 Manufacturing costs 60,000 77,000 83,000 Selling and administrative 50,000 $3,000 88,000 expenses Capital expenditures 55,000 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...
Cash Budget The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: September October November Sales $121,000 $155,000 $201,000 Manufacturing costs 51,000 67,000 72,000 Selling and administrative 42,000 47,000 76,000 expenses Capital expenditures 48,000 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...