account les ts Receivable Collections: ath of sale th following sale ond month following sale ыllectible ts payable for inventory purchases, March 1 balance ed inventory purchases in March ry payments:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question

S&P Enterprises needs budget for March.

 

Please provide excel Formulas

Data
January
February
March
Actual January and February and expected March sales:
4
Cash sales
1,600
3,750
30,000
S 33.7SO
5,100
25,000
S 26.6OQ
6
Sales on account
40,000
Total Sales
S 45.10Q
Accounts Receivable Collections:
10
Month of sale
15%
11
Month following sale
Second month following sale
60%
12
22%
13
Uncollectible
3%
14
15 Accounts payable for inventory purchases, March 1 balance
16 Budgeted inventory purchases in March
17 Inventory payments:
$10,500
$23,500
18
Month of purchase
Month following purchase
60%
19
40%
20
21 Total budgeted selling & administrative expenses in March
22 Budgeted selling & administrative depreciation in March
$12,500
$3,200
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
29 March 1 cash balance
30 March 1 outstanding borrowings
31 March 1 interest due
$10,000
$11,500
So
Expected cash collections:
March cash collections
5,100
March collections on account:
January sales
February sales
4
5,500
March sales
Total cash collections
Payments to suppllers:
10 Accounts payable for inventory purchases, beginning balance
11
March purchases
12 Total cash payments
13
S&P Enterprises
Cash Budget
For the Month of March
14
15
16
17
18 Cash balance, March 1
19 Add cash receipts:
20
Collecti ons from customers
21 Total cash available
22 Les s disbursements:
Payments to suppliers
Selling and administrative expenses
Equipment purchases
Dividends paid
23
24
25
26
27 Total disbursements
28 Preliminary cash balance
29 Financing:
30
Additional loan
31
Loan repayments
32
Interest
33 Total financing
34 Cash balance, March 31
Transcribed Image Text:Data January February March Actual January and February and expected March sales: 4 Cash sales 1,600 3,750 30,000 S 33.7SO 5,100 25,000 S 26.6OQ 6 Sales on account 40,000 Total Sales S 45.10Q Accounts Receivable Collections: 10 Month of sale 15% 11 Month following sale Second month following sale 60% 12 22% 13 Uncollectible 3% 14 15 Accounts payable for inventory purchases, March 1 balance 16 Budgeted inventory purchases in March 17 Inventory payments: $10,500 $23,500 18 Month of purchase Month following purchase 60% 19 40% 20 21 Total budgeted selling & administrative expenses in March 22 Budgeted selling & administrative depreciation in March $12,500 $3,200 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 29 March 1 cash balance 30 March 1 outstanding borrowings 31 March 1 interest due $10,000 $11,500 So Expected cash collections: March cash collections 5,100 March collections on account: January sales February sales 4 5,500 March sales Total cash collections Payments to suppllers: 10 Accounts payable for inventory purchases, beginning balance 11 March purchases 12 Total cash payments 13 S&P Enterprises Cash Budget For the Month of March 14 15 16 17 18 Cash balance, March 1 19 Add cash receipts: 20 Collecti ons from customers 21 Total cash available 22 Les s disbursements: Payments to suppliers Selling and administrative expenses Equipment purchases Dividends paid 23 24 25 26 27 Total disbursements 28 Preliminary cash balance 29 Financing: 30 Additional loan 31 Loan repayments 32 Interest 33 Total financing 34 Cash balance, March 31
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education