Answer:
Bridgeport Housewares Inc.
1. Monthly Cash Budget with supporting schedules for September, October, and November:
a. Cash Budget for September, October, and November:
                                                         September      October     November
Beginning balance                           $40,000      $111,0000      $137,500
Cash receipts                                   253,000       259,500        288,000
Total cash available                       $293,000     $370,500     $425,500
Cash Payments:
Payment for manufacturing costs   140,000       130,000        135,000              
Income tax                                                              55,000
Dividend                                                                                      25,000
Selling & administrative expenses   42,000        48,000          51,000
Capital expenditures                                _                    _       200,000
Total cash payment                      $182,000    $233,000      $411,000
Balance                                           $111,000     $137,500       $14,500
Minimum Cash Balance                  50,000        50,000         50,000
Cash to invest or borrow              $61,000      $87,500      -$35,500
b. Supporting Schedules:
i) Cash Collections:
                                                         September      October     November
10% Cash Sales, month of sales       $25,000     $30,000       $31,500
Sales on account: 90%
70% following month of sales                               157,500        189,000
30% 2nd month following sale                                                    67,500
30% of July Sales                                60,000
70% of August                                    168,000
30% of August                                                        72,000
Total cash receipts                         $253,000  $259,500     $288,000
2. The budget indicates that the minimum cash balance (will or will not) be maintained in November.  This situation can be corrected by (investing or borrowing) and/or by the (purchase or sale) of the marketable securities, if they are held for such purposes.  At the end of September and October, the cash balance will (exceed or be sort of) the minimum desired balance.
Explanation:
a) Data and Calculations:
1. Budget Information:
                                                         September      October     November
Sales                                                 $250,000    $300,000      $315,000
Manufacturing costs                           150,000       180,000        185,000
Selling and administrative expenses  42,000         48,000          51,000
Capital expenditures                                _                    _           200,000
2. Cash Collections:
                                                         September      October     November
10% Cash Sales, month of sales       $25,000     $30,000       $31,500
Sales on account: 90%
70% following month of sales                               157,500        189,000
30% 2nd month following sale                                                    67,500
30% of July Sales                                60,000
70% of August                                    168,000
30% of August                                                        72,000
Total cash receipts                         $253,000  $259,500     $288,000
3. Manufacturing Costs:
Manufacturing costs                           150,000       180,000        185,000
less Depreciation, insurance, &
 property tax expenses                       50,000        50,000          50,000
Remainder                                          100,000       130,000        135,000
4. Remainder of Manufacturing costs:
80% paid in the month incurred        80,000       104,000        108,000
Remainder 20%, month following     20,000        26,000         27,000
August manufacturing cost:              40,000
Payment for manufacturing costs $140,000     $130,000     $135,000
5. Cash Payments:
Payment for manufacturing costs   140,000       130,000        135,000              
Income tax                                                              55,000
Dividend                                                                                      25,000
Selling & administrative expenses   42,000        48,000          51,000
Capital expenditures                                _                    _       200,000
Total cash payment                      $182,000    $233,000      $411,000
Other relevant information:
Current assets as of September 1:
Cash of $40,000
Marketable securities of $75,000
Accounts receivable of $300,000 ($60,000 from July sales and $240,000 from August sales). Sales on account for July and August were $200,000 and $240,000, respectively
Current Liabilities:
September 1 Accounts payable = $40,000 incurred in August for manufacturing costs.
Selling and administrative expenses are paid in cash in the period they are incurred.
Income tax = $55,000 October
Quarterly Dividend of $25,000 in November
Minimum cash balance of $50,000 monthly
b) When Bridgeport Housewares Inc prepares budgeted monthly cash budgets, important highlights are indicated.  For instance, it becomes easier for the management of Bridgeport to know when to borrow cash to meet the minimum cash balance or in the alternative sell off some marketable securities.  It is also easier for Bridgeport to understand that it can be having excess cash which should not be allowed to sit idle, but can be invested in marketable securities.  The cash budgets and their preparation also help Bridgeport to be better prepared to exert the required efforts to generate sales revenue in order not to jeopardize its liquidity position.  It can also help Bridgeport to understand that the capital expenditure could have been paid for instalmentally starting from September or so instead of lumping the sum in November.  There are many other insights garnered from the cash budgets and their preparation.