You are provided with the following information taken from Splish Brothers Inc.’s March 31, 2022, balance sheet.Cash $ 12,330Accounts receivable 20,370Inventory 36,900Property, plant, and equipment, net of depreciation 120,500Accounts payable 22,640Common stock 153,800Retained earnings 12,460Additional information concerning Splish Brothers Inc. is as follows.1. Gross profit is 26% of sales. 2. Actual and budgeted sales data: March (actual) $47,000 April (budgeted) 73,100 3. Sales are both cash and credit. Cash collections expected in April are: March $18,800 (40% of $47,000) April 43,860 (60% of $73,100) $62,660 4. Half of a month’s purchases are paid for in the month of purchase and half in the following month. Cash disbursements expected in April are: Purchases March$22,640 Purchases April28,310 $50,950 5. Cash operating costs are anticipated to be $11,510 for the month of April.6. Equipment costing $2,650 will be purchased for cash in April.7. The company wishes to maintain a minimum cash balance of $12,970. An open line of credit is available at the bank. All borrowing is done at the beginning of the month, and all repayments are made at the end of the month. The interest rate is 14% per year, and interest expense is accrued at the end of the month and paid in the following month.Prepare a cash budget for the month of April. Determine how much cash Splish Brothers Inc. must borrow, or can repay, in April. ### Form Fields for Data EntryThis educational website provides a form with a variety of fields for data entry, which appear as follows:1. **Text Input Fields:** - There are three text input fields where users can enter information. Each field spans the full width of the form and includes a dropdown menu at the end, which may be used to select additional options related to the input.2. **Dropdown Menus:** - Two dropdown menus are located at the left side of two separate input fields. These dropdowns are followed by colons, indicating that the selections made will correspond to the input that follows.3. **Additional Input Fields:** - Two additional small rectangular input fields are located to the right of the main input fields. These may be used for entering secondary information or selecting supplementary options.4. **Currency Input Field:** - At the bottom right, there is a field for entering a monetary value, denoted by the “$” symbol. This field is intended for numeric input related to financial data.### Usage of the Form Fields- **First Three Text Fields:** Each of these fields could be for entering major portions of data, such as user names, addresses, or other primary information specifics. The accompanying dropdown menus might allow users to define the type of data they are entering, e.g., home vs. work addresses.- **Dropdown Menus with Input Fields:** These fields seem suitable for detailed data entry where a predefined category can be selected from the dropdown menu followed by specific details in the input box. Examples could include specifying a type of identifier (like a license number) or a category for entry followed by relevant details.- **Additional Input Fields:** The two additional input fields may serve for secondary data that supports or specifies the details entered in the main input fields.- **Monetary Input Field:** The monetary field, indicated by the dollar sign, is explicitly designated for financial amounts, such as pricing, fees, or other financial figures.### ExplanationThe form layout demonstrates a structured method for gathering comprehensive and categorized information. The combination of text fields, dropdown menus, and specified input types allows for efficient and organized data collection. Users should fill in each section attentively, selecting appropriate options from the dropdown menus and ensuring numerical accuracy in the monetary field to maintain data integrity. ### SPLISH BROTHERS INC.### Cash Budget---**Introduction:**This section contains an image depicting the layout for the cash budget of "Splish Brothers Inc." The cash budget template here is used for managing and monitoring the company's cash inflows and outflows. Below is a detailed explanation of the components and how to fill out the template.**Template Breakdown:**1. **Header:** - **Company Name:** SPLISH BROTHERS INC. (pre-filled) - **Title:** Cash Budget (pre-filled)2. **Period Selection:** - A dropdown menu where users can select the specific period for the cash budget (e.g., by month or quarter).3. **Cash Components:** - **Cash Receipts Section:** - A series of dropdown menus and text boxes to input different sources of cash receipts. It includes spaces for describing the receipt type and entering the amounts in the corresponding text boxes. - **Cash Payments Section:** - Similarly, there are dropdown menus and text boxes to record various types of cash payments. Users can specify the payment type and input the amounts.4. **Calculation Fields:** - **Total Cash Receipts:** A designated field for the sum of all cash receipts. - **Total Cash Payments:** A field to calculate and display the total cash payments incurred. - **Net Cash Flow:** Calculated as (Total Cash Receipts - Total Cash Payments).5. **Additional Features:** - Each row is equipped with a dropdown menu and a corresponding text box to select and specify different categories of cash flow, such as salaries, rent, sales revenue, etc. - There are empty text boxes aligned horizontally with each dropdown menu for entering financial values in dollars ($).**Graphical Representation:** - No specific graphs or diagrams are included in this layout, but it is structured in a tabular format that is conducive to data input and subsequent calculation.---After filling in the relevant details and amounts, this template can help Splish Brothers Inc. maintain a clear and organized record of their cash flow activities over the selected period. This tool is essential for effective financial planning and budgeting.

You are provided with the following information taken from Splish Brothers Inc.’s March 31, 2022, balance sheet. Cash $ 12,330 Accounts receivable 20,370 Inventory 36,900 Property, plant, and equipment, net of depreciation 120,500 Accounts payable 22,640 Common stock 153,800 Retained earnings 12,460 Additional information concerning Splish Brothers Inc. is as follows. 1. Gross profit is 26% of sales. 2. Actual and budgeted sales data: March (actual) $47,000 April (budgeted) 73,100 3. Sales are both cash and credit. Cash collections expected in April are: March $18,800 (40% of $47,000) April 43,860 (60% of $73,100) $62,660 4. Half of a month’s purchases are paid for in the month of purchase and half in the following month. Cash disbursements expected in April are: Purchases March $22,640 Purchases April 28,310 $50,950 5. Cash operating costs are anticipated to be $11,510 for the month of April. 6. Equipment costing $2,650 will be purchased for cash in April. 7. The company wishes to maintain a minimum cash balance of $12,970. An open line of credit is available at the bank. All borrowing is done at the beginning of the month, and all repayments are made at the end of the month. The interest rate is 14% per year, and interest expense is accrued at the end of the month and paid in the following month. Prepare a cash budget for the month of April. Determine how much cash Splish Brothers Inc. must borrow, or can repay, in April.

Cash budget: It is the tool that indicates the amount of available cash is appropriate or not for…

Half of a month’s purchases are paid for in the month of purchase and half in the following month. Cash disbursements expected in April are:

Purchases March

Purchases April

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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Question

You are provided with the following information taken from Splish Brothers Inc.’s March 31, 2022, balance sheet.

Cash		$ 12,330
Accounts receivable		20,370
Inventory		36,900
Property, plant, and equipment, net of depreciation		120,500
Accounts payable		22,640
Common stock		153,800
Retained earnings		12,460

Additional information concerning Splish Brothers Inc. is as follows.

1.	Gross profit is 26% of sales.
2.	Actual and budgeted sales data:
	March (actual)	$47,000
	April (budgeted)	73,100

3.	Sales are both cash and credit. Cash collections expected in April are:
	March	$18,800	(40% of $47,000)
	April	43,860	(60% of $73,100)
		$62,660

5.		Cash operating costs are anticipated to be $11,510 for the month of April.
6.		Equipment costing $2,650 will be purchased for cash in April.
7.		The company wishes to maintain a minimum cash balance of $12,970. An open line of credit is available at the bank. All borrowing is done at the beginning of the month, and all repayments are made at the end of the month. The interest rate is 14% per year, and interest expense is accrued at the end of the month and paid in the following month.

Prepare a cash budget for the month of April. Determine how much cash Splish Brothers Inc. must borrow, or can repay, in April.

### Form Fields for Data Entry

This educational website provides a form with a variety of fields for data entry, which appear as follows:

1. **Text Input Fields:**
- There are three text input fields where users can enter information. Each field spans the full width of the form and includes a dropdown menu at the end, which may be used to select additional options related to the input.

2. **Dropdown Menus:**
- Two dropdown menus are located at the left side of two separate input fields. These dropdowns are followed by colons, indicating that the selections made will correspond to the input that follows.

3. **Additional Input Fields:**
- Two additional small rectangular input fields are located to the right of the main input fields. These may be used for entering secondary information or selecting supplementary options.

4. **Currency Input Field:**
- At the bottom right, there is a field for entering a monetary value, denoted by the “$” symbol. This field is intended for numeric input related to financial data.

### Usage of the Form Fields

- **First Three Text Fields:**
Each of these fields could be for entering major portions of data, such as user names, addresses, or other primary information specifics. The accompanying dropdown menus might allow users to define the type of data they are entering, e.g., home vs. work addresses.

- **Dropdown Menus with Input Fields:**
These fields seem suitable for detailed data entry where a predefined category can be selected from the dropdown menu followed by specific details in the input box. Examples could include specifying a type of identifier (like a license number) or a category for entry followed by relevant details.

- **Additional Input Fields:**
The two additional input fields may serve for secondary data that supports or specifies the details entered in the main input fields.

- **Monetary Input Field:**
The monetary field, indicated by the dollar sign, is explicitly designated for financial amounts, such as pricing, fees, or other financial figures.

### Explanation

The form layout demonstrates a structured method for gathering comprehensive and categorized information. The combination of text fields, dropdown menus, and specified input types allows for efficient and organized data collection. Users should fill in each section attentively, selecting appropriate options from the dropdown menus and ensuring numerical accuracy in the monetary field to maintain data integrity.

### SPLISH BROTHERS INC.
### Cash Budget

---

**Introduction:**
This section contains an image depicting the layout for the cash budget of "Splish Brothers Inc." The cash budget template here is used for managing and monitoring the company's cash inflows and outflows. Below is a detailed explanation of the components and how to fill out the template.

**Template Breakdown:**

1. **Header:**
- **Company Name:** SPLISH BROTHERS INC. (pre-filled)
- **Title:** Cash Budget (pre-filled)

2. **Period Selection:**
- A dropdown menu where users can select the specific period for the cash budget (e.g., by month or quarter).

3. **Cash Components:**
- **Cash Receipts Section:**
- A series of dropdown menus and text boxes to input different sources of cash receipts. It includes spaces for describing the receipt type and entering the amounts in the corresponding text boxes.
- **Cash Payments Section:**
- Similarly, there are dropdown menus and text boxes to record various types of cash payments. Users can specify the payment type and input the amounts.

4. **Calculation Fields:**
- **Total Cash Receipts:** A designated field for the sum of all cash receipts.
- **Total Cash Payments:** A field to calculate and display the total cash payments incurred.
- **Net Cash Flow:** Calculated as (Total Cash Receipts - Total Cash Payments).

5. **Additional Features:**
- Each row is equipped with a dropdown menu and a corresponding text box to select and specify different categories of cash flow, such as salaries, rent, sales revenue, etc.
- There are empty text boxes aligned horizontally with each dropdown menu for entering financial values in dollars ($).

**Graphical Representation:**
- No specific graphs or diagrams are included in this layout, but it is structured in a tabular format that is conducive to data input and subsequent calculation.

---

After filling in the relevant details and amounts, this template can help Splish Brothers Inc. maintain a clear and organized record of their cash flow activities over the selected period. This tool is essential for effective financial planning and budgeting.

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

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