Heidi Pedersen, the treasurer for Wood Products, Inc., has just been asked by Justin Wood, the president, to prepare a memo detailing the company’s ending cash balance for the next three months. Below, you will see the relevant estimates for this period.

July August September Credit sales $1,275,800 $1,483,500 $1,096,300 Credit purchases 765,480 890,160 657,780 Cash disbursements:

Wages, taxes, and expenses 348,600 395,620 337,150 Interest 29,900 29,900 29,900 Equipment 0 158,900 96,300 Credit sales collections:

Collected in month of sale 35%

Collected month after sale 60%

Never collected 5%

June credit sales: $1,135,020 June credit purchases $ 681,012 Beginning cash balance $ 425,000 All credit purchases are paid in the month after the purchase.

a. Complete the cash budget for Wood Products for the next three months.

b. Heidi knows that the cash budget will become a standard report completed before each quarter. To help reduce the time preparing the report each quarter, she would like a memo with the appropriate information in Excel linked to the memo. Prepare a memo to Justin that will automatically update when the values are changed in Excel.