19 Month following purchase 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 26 27 28 Minimum cash balance to be maintained. 29 March 1 cash balance 30 March 1 outstanding borrowings 31 March 1 interest due Equipment purchases Dividends to be paid 40% $12,500 $3,200 $14,000 $2,000 $10,000 $11,500 $0 $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: 38 1. Schedule of expected cash collections for March. 39 40 41 42 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.

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
Transcribed Image Text: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
Transcribed Image Text: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
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