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 $126.600 S 33,750 $_45.100 8 9 Accounts Receivable Collections: 10 Month of sale 11 Month following sale 12 Second month following sale Uncollectible 15% 60% 22% 3% 13 14 $10,500 $23,500 15 Accounts payable for inventory purchases, March 1 balance 16 Budgeted inventory purchases in March 17 Inventory payments: 18 Month of purchase 19 Month following purchase 20 21 Total budgeted selling & administrative expenses in March 22 Budgeted selling & administrative depreciation in March 23 74 Other bastercach dicuramente Marb 60% 40% $12.500 $3.200 26 22 Budgeted selling & administrative depreciation in March $3,200 23 24 Other budgeted cash disbursements in March 25 Equipment purchases S14,000 Dividends to be paid $2,000 27 28 Minimum cash balance to be maintained $10.000 29 March 1 cash balance $11,500 30 March 1 outstanding borrowings SO 31 March 1 interest due SO 32 33 The company has a line of credit available to bolster the cash balance as needed. 34 55 When preparing budgets, the company maintains their data on a separate sheet from the actual budget and schedules. 36 37 Click the Schedules and Cash Budget tals to prepare the following: 38 1. Schedule of expected cash collections for March 39 2. Schedule of expected cash disbursements for lovetory purchases for March 3. Cash budget for March. Indicate in the financing section any borrowing that will be needed in March. Assume that 42 any interest will not be paid until the following month + 42 40 43 44 45 Budget Data Schedules and Cash Budget ? ES - XH 5. X . - Cash Budget with Supporting Cash Collections and Disbursements Schedules - Excel INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In FILE HOME X Calibri 17 % M AA A. Paste Cells Editing BTU Alignment Number Conditional Format as Cell Formatting Table Styles Styles Clipboard Font A1 X Expected cash collections: A B D E 1 Expected cash collections: 2 March cash collections 3 March collections on account: January sales 5 February sales 6 March sales 7 Total cash collections 4 8 9 Payments to suppliers: 10 Accounts payable for inventory purchases, beginning balance 11 March purchases 12 Total cash payments - 13 14 15 S&P Enterprises dash Budget For the Month of March 16 17 18 Casly balance, March 1 19 Add cash receipts 20 Collections from customers 21 Total cash available before current financing 22 Less disbursements: 23 Payments to suppliers 24 Selling and administrative Axneses Budget Data Schedules and cash Budget (+ READY 100% Alma 1 ? el 1 x Cash Budget with Supporting Cash Collections and Disbursements Schedules - Excel PAGE LAYOUT FORMULAS DATA REVIEW VIEW FILE HOME INSERT Sign In 26 Calibri 11 HAA % CH M Paste B 1 U Cells Editing Clipboard Fort Alignment Number Conditional Formatas Cell Formatting Table Styles Styles Expected cash collections: A1 A > D E 16 For the Month of March 17 18 Cash balance, March 1 19 Add cash receipts: 20 Collections from customers 21 Total cash available before current financing 22 Less disbursements: 23 Payments to suppliers 24 Selling and administrative expenses 25 Equipment purchases 26 Dividends pald 27 Total disbursements 28 Excess (deficiency) of cash available over disbursements 29 Financing 30 Borrowings Repayments 32 Interest 33 Total financing 84 Cash balance, March 31 35 31 35 38 39 Budget Data Schedules and Cash Budget