70.2K

Verified Solution

Link Copied!

PLEASE ENTER THE ANSWER AND THE EXCEL FORMULA USED, EX: =F5+E8

D E B 1 S&P Enterprises needs a cash budget for March. The following information is available. 2 January February March $ 1,600 $ 3,750 $ 5,100 25,000 30,000 40,000 $ 26,600 $ 33.750 $_45.100 11 3 Data 4 Actual January and February and expected March sales: 5 Cash sales 6 Sales on account 7 Total Sales 8 9 Accounts Receivable Collections: 10 Month of sale Month following sale 12 Second month following sale 13 Uncollectible 14 15 Accounts payable for inventory purchases, March 1 balance 16 Budgeted inventory purchases in March 17 Inventory payments: Month of purchase Month following purchase 15% 60% 22% 3% $10,500 $23,500 18 60% 40% 19 20 21 Total budgeted selling & administrative expenses in March 22 Budgeted selling & administrative depreciation in March 23 $12,500 $3,200 A B D E $3,200 22 Budgeted selling & administrative depreciation in March 23 24 Other budgeted cash disbursements in March 25 Equipment purchases Dividends to be paid $14,000 $2,000 26 27 28 Minimum cash balance to be maintained $10,000 29 March 1 cash balance $11,500 30 March 1 outstanding borrowings $0 31 March 1 interest due $0 32 33 The company has a line of credit available to bolster the cash balance as needed. 34 35 When preparing budgets, the company maintains their data on a separate sheet from the actual budget and schedules. 36 37 Click the Schedules and Cash Budget tab to prepare the following: 1. Schedule of expected cash collections for March. 2. Schedule of expected cash disbursements for inventory purchases for March. 3. Cash budget for March. Indicate in the financing section any borrowing that will be needed in March. Assume that any interest will not be paid until the following month. 38 39 40 41 12 B 1 Expected cash collections: 2 March cash collections 3 March collections on account: 4 January sales 5 February sales March sales 7 Total cash collections 6 8 9 Payments to suppliers: 10 Accounts payable for inventory purchases, beginning balance 11 March purchases 12 Total cash payments B D 10 Accounts payable for inventory purchases, beginning balance 11 March purchases 12 Total cash payments 13 14 S&P Enterprises 15 Cash Budget 16 For the Month of March 17 18 Cash balance, March 1 19 Add cash receipts: 20 Collections from customers 21 Total cash available 22 Less disbursements: 23 Payments to suppliers 24 Selling and administrative expenses 25 Equipment purchases 26 Dividends paid 27 Total disbursements 28 Cash balance before financing 29 Financing: 30 Borrowings/Repayments 31 Cash balance, March 31 32 33

Answer & Explanation Solved by verified expert

See Answer