B a 1 S&P Enterprises needs a cash budget for March. The following information is available. 2 3 Data January February March 4 Actual January and February and expected March sales: 5 Cash sales $1,600 $3,750 $5,100 6 Sales on account 25,000 30,000 40,000 7 Total Sales $26,600 $33,750 $45,100 8 9 Accounts Receivable Collections: 10 Month of sale 15% 11 Month following sale 60% 12 Second month following sale 22% 13 Uncollectible 3% 14 Accounts payable for inventory purchases, March 1 balance 15 Budgeted inventory purchases in March $10,500 $23,500 16 Inventory payments: 17 Month of purchase 60% 18 Month following purchase 40% 19 20 21 Total budgeted selling & administrative expenses in March (including depreciation) Budgeted depreciation in March (included in total selling and admin exp) $12,500 $3,200 22 23 Other budgeted cash disbursements in March 24 Equipment purchases 25 Dividends to be paid 26 27 Minimum cash balance to be maintained 28 March 1 cash balance 29 March 1 outstanding borrowings 30 March 1 interest due $14,000 $2,000 $10,000 $11,500 $0 $0 31 32 The company has a line of credit available to bolster the cash balance as needed. 33 34 When preparing budgets, the company maintains their data on a separate sheet from the actual budget and schedules. 5 6 Required: 7 Click the Schedules and Cash Budget tab to prepare the following: 8 1. Schedule of expected cash collections for March. 9 2. Schedule of expected cash disbursements for inventory purchases for March. 0 1 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. 2
B a 1 S&P Enterprises needs a cash budget for March. The following information is available. 2 3 Data January February March 4 Actual January and February and expected March sales: 5 Cash sales $1,600 $3,750 $5,100 6 Sales on account 25,000 30,000 40,000 7 Total Sales $26,600 $33,750 $45,100 8 9 Accounts Receivable Collections: 10 Month of sale 15% 11 Month following sale 60% 12 Second month following sale 22% 13 Uncollectible 3% 14 Accounts payable for inventory purchases, March 1 balance 15 Budgeted inventory purchases in March $10,500 $23,500 16 Inventory payments: 17 Month of purchase 60% 18 Month following purchase 40% 19 20 21 Total budgeted selling & administrative expenses in March (including depreciation) Budgeted depreciation in March (included in total selling and admin exp) $12,500 $3,200 22 23 Other budgeted cash disbursements in March 24 Equipment purchases 25 Dividends to be paid 26 27 Minimum cash balance to be maintained 28 March 1 cash balance 29 March 1 outstanding borrowings 30 March 1 interest due $14,000 $2,000 $10,000 $11,500 $0 $0 31 32 The company has a line of credit available to bolster the cash balance as needed. 33 34 When preparing budgets, the company maintains their data on a separate sheet from the actual budget and schedules. 5 6 Required: 7 Click the Schedules and Cash Budget tab to prepare the following: 8 1. Schedule of expected cash collections for March. 9 2. Schedule of expected cash disbursements for inventory purchases for March. 0 1 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. 2
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 6BE: Cash budget Pasadena Candle Inc. pays 40% of its purchases on account in the month of the purchase...
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
please help me with the formulas that are needed to get the correct answer for each blank cell provided. thank you and have a good week
Transcribed Image Text:A
B
C
D
1
S&P Enterprises needs a cash budget for March. The following information is available.
2
3
Data
January
February
March
4
Actual January and February and expected March sales:
5
Cash sales
$1,600
$3,750
$5,100
6
Sales on account
25,000
30,000
40,000
7
Total Sales
$26,600
$33,750
$45,100
8
9 Accounts Receivable Collections:
10
Month of sale
15%
11
Month following sale
60%
12
Second month following sale
22%
13
Uncollectible
3%
14 Accounts payable for inventory purchases, March 1 balance
$10,500
15 Budgeted inventory purchases in March
$23,500
16
Inventory payments:
17
Month of purchase
60%
18 Month following purchase
40%
19
222222222203
21
Total budgeted selling & administrative expenses in March (including depreciation)
Budgeted depreciation in March (included in total selling and admin exp)
$12,500
$3,200
Other budgeted cash disbursements in March
24
Equipment purchases
25 Dividends to be paid
26
27
Minimum cash balance to be maintained
28 March 1 cash balance
29 March 1 outstanding borrowings
March 1 interest due
31
$14,000
$2,000
$10,000
$11,500
$0
$0
The company has a line of credit available to bolster the cash balance as needed.
When preparing budgets, the company maintains their data on a separate sheet from the actual budget and schedules.
Required:
33
34
35
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
41
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.
42
43
(Use cells A4 to B31 from the given information to complete this question.)
44
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