1. Prepare a sales budget, including a schedule of expected cash collections. 2. Prepare a direct materials budget, including a schedule of expected cash disbursements for purchases of materials. 3. Prepare a cash budget. Cash Budget with Supporting Cash Collections and Disbursements Schedules - Excel ? FILE HOME INSERT PAGE LAYOUT Calibri 11 A Paste BIU - Clipboard Font FORMULAS DATA % Alignment Number Conditional Format as Cell Cells Editing Formatting Table - Styles- Styles REVIEW VIEW Sign In A1 x fx S&P Enterprises needs a cash budget for March. The following information is A B C D E 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 S 1,600 $ 6 Sales on account 25,000 30,000 3,750 $ 5,100 40,000 S 26,600 $ 33,750 $45,100 7 Total Sales 8 9 Accounts Receivable Collections: 10 Month of sale 11 Month following sale 12 Second month following sale 13 Uncollectible 15% 60% 22% 3% 14 15 Accounts payable for inventory purchases, March 1 balance 16 Budgeted inventory purchases in March $10,500 $23,500 17 Inventory payments: 18 Month of purchase 60% 19 Month following purchase 40% 20 21 Total budgeted selling & administrative expenses in March $12,500 22 Budgeted selling & administrative depreciation in March 23 $3,200 Other budgeted cash disbursements in March Equipment purchases $14,000 Dividends to be paid $2,000 Minimum cash balance to be maintained $10,000 March 1 cash balance $11,500 March 1 outstanding borrowings. $0 $0 March 1 interest due 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. 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. Expected cash collections: 2 March cash collections 3 March collections on account: January sales 4 5 February sales 6 March sales 7 Total cash collections 8 9 Payments to suppliers: 10 Accounts payable for inventory purchases, beginning balance 1 March purchases 2 Total cash payments 13 14 15 16 17 18 Cash balance, March 1 19 Add cash re ceipts: 20 Collections from customers 21 Total cash available 22 Less disbursements: 23 Payments to suppliers S & P Enterprises Cash Budget Forthe Month of March 24 Selling and administrative expenses Cash balance, March 1 Add cash receipts: Collections from customers Total cash available Less disbursements: Payments to suppliers Selling and administrative expenses Equipment purchases Dividends paid Total disbursements Preliminary cash balance Financing: Additional loan Loan repayments Interest Total financing Cash balance, March 31