Can I have some help with this practice quesiton please I have been working on it to try to get more knowledge of the chapter we are on. Cash BudgetThe controller of Sonoma Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budgetinformation:May$97,000Manufacturing costs41,000Selling and administrative expenses 28,000Capital expendituresSalesJuly$119,000 $158,00051,00057,00032,00035,00084,000JuneThe company expects to sell about 12% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and theremainder the following month (second month following sale). Depreciation, insurance, and property tax expense represent $7,000 of the estimated monthlymanufacturing costs. The annual insurance premium is paid in September, and the annual property taxes are paid in November. Of the remainder of the manufacturingcosts, 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 $37,000, marketable securities of $52,000, and accounts receivable of $108,400 ($85,000 from April sales and $23,400 fromMarch sales). Sales on account for March and April were $78,000 and $85,000, respectively. Current liabilities as of May 1 include $12,500 of accounts payable incurred inApril 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 bemade in June. Sonoma's regular quarterly dividend of $7,000 is expected to be declared in June and paid in July. Management wants to maintain a minimum cash balanceof $29,000. Required:1. Prepare a monthly cash budget and supporting schedules for May, June, and July. Input all amounts as positive values except overall cash decrease and deficiencywhich should be indicated with a minus sign.Sonoma Housewares Inc.Cash BudgetFor the Three Months Ending July 31MayJuneEstimated cash receipts from:Cash salesCollection of accounts receivableDividendsTotal cash receiptsEstimated cash payments for:Manufacturing costsSelling and administrative expensesCapital expendituresOther purposes:Income taxTotal cash paymentsCash increase or (decrease)Cash balance at beginning of monthCash balance at end of monthMinimum cash balanceExcess (deficiency)$July

Cash budget is one of the important budget being prepared in business. It shows all estimated cash…

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 Estimated cash receipts from: Cash sales Dividends Collection of accounts receivable Total cash receipts Estimated cash payments for: Manufacturing costs Selling and administrative expenses Capital expenditures Other purposes: Income tax Total cash payments Cash increase or (decrease) Cash balance at beginning of month Cash balance at end of month Minimum cash balance Excess (deficiency) $ 000000 July