1 What SUP 2 Operating Cash Payments Budget Jan Total 4. Operating cash payments 5 Product sales revenue 6 Purchases 7 Cost of expected sales 8 Required ending inventory 9 Beginning inventory 10 Purchases 11 Current monthly payments 12 Subsequent monthly payments 13 Cash payments for purchases 14 Expenses 15 Selling expenses 16 General and administrative expenses 17 Expenses 18 Operating cash payments 19 20 Assumptions 21 Beginning inventory 22 Required ending inventory 23 Cost of expected sales 24 Product sales expected in April 25 Beginning accounts payable 26 Pct. of purchases paid in current month 27 Pct. of purchases paid in subsequent month name allu all Pince I the hours receipts of $220,000 III JL assumptions in Value view, with your name and lower left footer and the file name in the lower right footer 2 Create a new What SUP Operating Cash Payments Budget Using the ch6-03 file to start your work, create a worksheet simila the one created in this chapter to budget operating cash payment month for 3 months. Place assumption information in the cells provided and define and use names extensively. Product sales revenue of $150,000, $165,000, $175,000, and $180,000 is expected in January. February March, and April respectively. Purchases cost 60 percent of product sales. The company would like to maintain an ending inventory equal to 50 percent of the next month's cost of sales. At the beginning of January, the company had $75,000 in inventory and $15,000 in accounts payable; 90 percent of a month's purchases are paid in the cur- rent month, with the remaining paid in the following month. Selling expenses are expected to be $6,000, $7,000, and $8,000 in January, Feb- ruary, and March (respectively), while general and expenses are expected to remain constant at $40,000 per month. All administrative expenses are paid in the month incurred. Use Excel's grouping feature to group purchases, payments for purchases, and expense rows together and to group the three monthly columns together. Save your file as cho- 03_student_name (replacing student_name with your name)