S&P Enterprises needs a cash budget for March. The following information is available. Data Actual January and February and expected March sales: Cash sales Sales on account Total Sales January February March $1,600 $3,750 $5,100 25,000 30,000 40,000 $26,600 $33,750 $45,100 Accounts Receivable Collections: Month of sale 15% Month following sale 60% Second month following sale 22% Uncollectible 3% Accounts payable for inventory purchases, March 1 balance $10,500 Budgeted inventory purchases in March $23,500 Inventory payments: Month of purchase Month following purchase O Total budgeted selling & administrative expenses in March (including depreciation) Budgeted depreciation in March (included in total selling and admin exp) 60% 40% $12,500 $3,200 Other budgeted cash disbursements in March Equipment purchases Dividends to be paid $14,000 $2,000 Minimum cash balance to be maintained $10,000 March 1 cash balance $11,500 March 1 outstanding borrowings $0 March 1 interest due $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: Click the Schedules and Cash Budget tab to prepare the following: 1. Schedule of expected cash collections for March. 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.
S&P Enterprises needs a cash budget for March. The following information is available. Data Actual January and February and expected March sales: Cash sales Sales on account Total Sales January February March $1,600 $3,750 $5,100 25,000 30,000 40,000 $26,600 $33,750 $45,100 Accounts Receivable Collections: Month of sale 15% Month following sale 60% Second month following sale 22% Uncollectible 3% Accounts payable for inventory purchases, March 1 balance $10,500 Budgeted inventory purchases in March $23,500 Inventory payments: Month of purchase Month following purchase O Total budgeted selling & administrative expenses in March (including depreciation) Budgeted depreciation in March (included in total selling and admin exp) 60% 40% $12,500 $3,200 Other budgeted cash disbursements in March Equipment purchases Dividends to be paid $14,000 $2,000 Minimum cash balance to be maintained $10,000 March 1 cash balance $11,500 March 1 outstanding borrowings $0 March 1 interest due $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: Click the Schedules and Cash Budget tab to prepare the following: 1. Schedule of expected cash collections for March. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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! need the formulas for each question to get the answers correct
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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