As the company's controller, you have been asked to explain the significance of the cash budget. In your report, share the components of the cash budget. Use your assignment in Part 1 as an example.

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: Cash sales $ 1,600 $ 3,750 $ 5,100 6 Sales on account 25,000 30,000 40,000 7 Total Sales $ 26,600 $ 33,750 $ 45,100 8 9 Accounts Receivable Collections: 10 Month of sale 15% 11 Month following sale 60% 12 Second month following sale 22% 13 Uncollectible 3% 14 15 Accounts payable for inventory purchases, March 1 balance $10,500 16 Budgeted inventory purchases in March $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 $3,200 23 24 Other budgeted each dichurcements in March Budget Data Schedules and Cash Budget + 1Budgeted inventory purchases in March $23,500 Inventory payments: Month of purchase 60% Month following purchase 40% Total budgeted selling & administrative expenses in March $12,500 Budgeted selling & administrative depreciation in March $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 March 1 interest due $0 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. Budget Data Schedulesand Cash Budget |... (a a: 1 Expected cash collections: 2 March cash collections $ 5,100 3 March collections on account: January sales 5,500 February sales 18,000 March sales 6,000 7 Total cash collections $ 34,600 OO 9 Payments to suppliers: 10 Accounts payable for inventory purchases, beginning balance $ 10,500 11 March purchases 14,100 12 Total cash payments $ 24,600 13 14 S & P Enterprises 15 Cash Budget 16 For the Month of March 17 18 Cash balance, March 1 $ 11,500 19 Add cash receipts: 20 Collections from customers 34,600 21 Total cash available 46,100 22 Less disbursements: 23 Payments to suppliers $ 24,600 24 Selling and administrative expenses 9.300 Budget Data Schedules and Cash Budget + 4Cash 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 nancing Cash balance, March 31 Budget Data Schedules and Cash Budget