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 Accounts Receivable Collections: Month of sale January February March $1,600 $3,750 $5,100 25,000 30,000 40,000 $26,600 $33,750 $45,100 15% Month following sale 60% Second month following sale 2296 Uncollectible 396 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 60% 40% Total budgeted selling & administrative expenses in March (including depreciation) Budgeted depreciation in March (included in total selling and admin exp) Other budgeted cash disbursements in March Equipment purchases Dividends to be paid Minimum cash balance to be maintained March 1 cash balance March 1 outstanding borrowings March 1 interest due $12,500 $3,200 $14,000 $2,000 $10,000 $11,500 888 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 Accounts Receivable Collections: Month of sale January February March $1,600 $3,750 $5,100 25,000 30,000 40,000 $26,600 $33,750 $45,100 15% Month following sale 60% Second month following sale 2296 Uncollectible 396 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 60% 40% Total budgeted selling & administrative expenses in March (including depreciation) Budgeted depreciation in March (included in total selling and admin exp) Other budgeted cash disbursements in March Equipment purchases Dividends to be paid Minimum cash balance to be maintained March 1 cash balance March 1 outstanding borrowings March 1 interest due $12,500 $3,200 $14,000 $2,000 $10,000 $11,500 888 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
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(Use cells A4 to D7 and A10 to B30 from the given information in screenshot 1, as well as A3 to C34 from the Schedules and Please provide me with the formulas needed to complete each cell that has a yellow background. thank you |
Transcribed Image Text:1
2
A
S&P Enterprises needs a cash budget for March. The following information is available.
B
C
D
E
F
G
H
3
Data
4 Actual January and February and expected March sales:
5
Cash sales
6
Sales on account
7
Total Sales
January
February
March
$1,600
$3,750
$5,100
25,000
30,000
40,000
$26,600
$33,750
$45,100
8
9
Accounts Receivable Collections:
10
Month of sale
1596
11
Month following sale
60%
12
Second month following sale
2296
13
Uncollectible
39
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
18
Month following purchase
60%
40%
19
20 Total budgeted selling & administrative expenses in March (including depreciation)
$12,500
21 Budgeted depreciation in March (included in total selling and admin exp)
$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
31
32 The company has a line of credit available to bolster the cash balance as needed.
33
$14,000
$2,000
$10,000
$11,500
So
so
34 When preparing budgets, the company maintains their data on a separate sheet from the actual budget and schedules.
35
36 Required:
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
42
43
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.
(Use cells A4 to D7 and A10 to B30 from the given information, as well as A3 to C34 from the Schedules and Cash Budget to
complete this question
<
= Budget Data Schedules and Cash Budget +
Transcribed Image Text:1
2 Expected cash collections:
3
March cash collections
4 March collections on account:
January sales
5
6
February sales
7
March sales
8
Total cash collections
9
A
B
с
10 Payments to suppliers:
11 Accounts payable for inventory purchases, beginning balance
12 March purchases
13 Total cash payments
14
15
16
17
18 Cash balance, March 1
19 Add cash receipts:
20
Collections from customers
21 Total cash available
Payments to suppliers
22 Less disbursements:
23
24
25
26
Selling and administrative expenses
Equipment purchases
Dividends paid
27 Total disbursements
28 Preliminary cash balance
29 Financing:
S&P Enterprises
Cash Budget
For the Month of March
30
Additional loan
31
Loan repayments
32
Interest
33 Total financing
34 Cash balance, March 31
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