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
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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
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