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Andrea Pedersen, the Treasurer for Wood Products, Inc. has just been asked by Justin Wood, the company's president, to prepare a memo detailing the company's
Andrea Pedersen, the Treasurer for Wood Products, Inc. has just been asked by Justin Wood, the company's president, to prepare a memo detailing the company's ending cash balance for the next 3 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 | - | 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. | ||||
Complete the cash budget for Wood Products for the next three months. | ||||
Andrea 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 (in Excel too) with the appropriate information in this Excel file linked to the memo. Prepare a memo to Justin that will automatically update when the values are changed in Excel. |
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