Need to used in formulas Expected cash collections:March cash collectionsMarch collections on accounts: January sales February sales March salesTotal cash collectionsPayments to suppliers:Accounts payable for inventory purchase, beginning balance March purchaseTotal cash payments S & P Enterprises Cash Budget For the Month of MarchCash balance, March 1Add cash receipts: Collections from customersTotal cash available before current financing Less disbursement: Payments to suppliers Selling and administrative expenses Equipment purchases Dividends paidTotal disbursement Excess (deficiency) of cash available over disbursementFinancing: Borrowings Repayments InterestTotal financing Cash balancing, March 31 ClipboardE16b1819Month of purchaseMonth following purchase⠀Font29 March 1 cash balance30 March 1 outstanding borrowings31 March 1 interest dueREADY▶www2021 Total budgeted selling & administrative expenses in March22 Budgeted selling & administrative depreciation in March2324 Other budgeted cash disbursements in March25Equipment purchases26Dividends to be paid2728 Minimum cash balance to be maintainedAIBudget DatafxESchedules and Cash BudgetFormatting Table StylesStyleswwwB+60%40%$12,500$3,2003233 The company has a line of credit available to bolster the cash balance as needed.3435 When preparing budgets, the company maintains their data on a separate sheet from the actual budget and schedules.3637 Click the Schedules and Cash Budget tab to prepare the following:381. Schedule of expected cash collections for March.392. Schedule of expected cash disbursements for inventory purchases for March.403. Cash budget for March. Indicate in the financing section any borrowing that will be needed in March. Assume thatany interest will not be paid until the following month.4142$14,000$2,000$10,000$11,500$0$0CADAlE▶89%F^4Submi ed-kcesClipboard EE16Sales on account1FontREADY✓ABC1 S & P Enterprises needs a cash budget for March. The following information is available.23Data4 Actual January and February and expected March sales:5 Cash sales67 Total Sales89 Accounts Receivable Collections:101112131415 Accounts payable for inventory purchases, March 1 balance16 Budgeted inventory purchases in March17 Inventory payments:Month of saleMonth following saleSecond month following saleUncollectiblefxMonth following purchaseE18 Month of purchase192021 Total budgeted selling & administrative expenses in March22 Budgeted selling & administrative depreciation in March2324 Other budgeted cash disbursements in MarchLauinmant nurohocBudget Data Schedules and Cash BudgetFormatting Table StylesStyles+January$1,600 $3,750 $5,10030,00025,00040,000$ 26,600 $ 33,750 $ 45,10015%60%22%3%$10,500$23,50060%40%February$12,500$3,200$14.000<DAMarchE20%F

The cash budget is the presentation of all the cash incomes and revenues and all the cash costs and…

Answered: 19 Month following purchase 20 21 Total…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Need to used in formulas Expected cash collections: March cash collections March collections on accounts: January sales February sales March sales Total cash collections Payments to suppliers: Accounts payable for inventory purchase, beginning balance March purchase Total cash payments S & P Enterprises Cash Budget For the Month of March Cash balance, March 1 Add cash receipts: Collections from customers Total cash available before current financing Less disbursement: Payments to suppliers Selling and administrative expenses Equipment purchases Dividends paid Total disbursement Excess (deficiency) of cash available over disbursement Financing: Borrowings Repayments Interest Total financing Cash balancing, March 31

Clipboard
E16
b
18
19
Month of purchase
Month following purchase
⠀
Font
29 March 1 cash balance
30 March 1 outstanding borrowings
31 March 1 interest due
READY
▶
www
20
21 Total budgeted selling & administrative expenses in March
22 Budgeted selling & administrative depreciation in March
23
24 Other budgeted cash disbursements in March
25
Equipment purchases
26
Dividends to be paid
27
28 Minimum cash balance to be maintained
A
I
Budget Data
fx
E
Schedules and Cash Budget
Formatting Table Styles
Styles
www
B
+
60%
40%
$12,500
$3,200
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:
38
1. Schedule of expected cash collections for March.
39
2. Schedule of expected cash disbursements for inventory purchases for March.
40
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.
41
42
$14,000
$2,000
$10,000
$11,500
$0
$0
C
A
D
Al
E
▶
89%
F
^
4
Submi

ed
-k
ces
Clipboard E
E16
Sales on account
1
Font
READY
✓
A
B
C
1 S & P Enterprises needs a cash budget for March. The following information is available.
2
3
Data
4 Actual January and February and expected March sales:
5 Cash sales
6
7 Total Sales
8
9 Accounts Receivable Collections:
10
11
12
13
14
15 Accounts payable for inventory purchases, March 1 balance
16 Budgeted inventory purchases in March
17 Inventory payments:
Month of sale
Month following sale
Second month following sale
Uncollectible
fx
Month following purchase
E
18 Month of purchase
19
20
21 Total budgeted selling & administrative expenses in March
22 Budgeted selling & administrative depreciation in March
23
24 Other budgeted cash disbursements in March
Lauinmant nurohoc
Budget Data Schedules and Cash Budget
Formatting Table Styles
Styles
+
January
$
1,600 $
3,750 $5,100
30,000
25,000
40,000
$ 26,600 $ 33,750 $ 45,100
15%
60%
22%
3%
$10,500
$23,500
60%
40%
February
$12,500
$3,200
$14.000
<
D
A
March
E
20%
F

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

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