Budget Data January February March 3 Data 4 Actual January and February and expected March sales: 5 Cash sales 6 Sales on account 7 Total Sales $ 1,600 25.000 $26.600 3,750 30.000 33.750 $ 5,100 40.000 $ 45.100 9 Accounts Receivable Collections: Month of sale 11 Month following sale Second month following sale Uncollectible 15% 60% 12 22% 39 $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 Month following purchase Mo 60% 40% 19 20 21 Total budgeted selling & administrative expenses in March 22 Budgeted selling & administrative depreciation in March $12,500 $3,200 24 Other budgeted cash disbursements in March 25 Equipment purchases Dividends to be paid $14,000 $2,000 $10,000 $11,500 28 Minimum cash balance to be maintained 29 March 1 cash balance 30 March 1 outstanding borrowings 31 March 1 interest due 33 The company has a line of credit available to bolster the cash balance as needed maintains their data on a separate sheet from the actual budget and schedules. 35 When preparing budgets, the company maintains their data on 37 Click the Schedules and Cash Budget tab to prepare the following: 38 1. Schedule of expected cash collections for March 39 Schedule of expected cash disbursements for inventory purchases de 40 3. Cash budget for March. Indicate in the financing sectiona 41 any interest will not be paid until the following month. irsements for inventory purchases for March in the financing section any borrowing that will be needed in March 1 Expected cash collections: 2 March cash collections 3 March collections on account: 4 January sales 5 February sales 6 March sales 7 Total cash collections 9 Payments to suppliers: 10 Accounts payable for inventory purchases, beginning balance 11 March purchases 12 Total cash payments S&P Enterprises Cash Budget For the Month of March 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 paid 27 Total disbursements 28 Excess (deficiency) of cash available over disbursements 29 Financing: 30 Borrowings 31 Repayments 32 Interest 33 Total financing 34 Cash balance, March 31