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.

Master it! Solution Beginning cash balance Cash receipts Cash collections from credit sales Total cash available Cash disbursements Purchases Wages, taxes, and other expenses Interest Equipment purchases Total cash disbursements Ending cash balance July August September $425,000 $427,835 $493,030 1,127,542 1,284,705 1,273,805 $681,012 $765,480 $890,160 395,620 348,600 337, 150 29,900 29,900 29,900 158,900 96,300 $1,059,512 $1,349 900 $1,353,510 6493 030 278 835 $348 130