Excel Online Structured Activity: Cash Budgeting Dorothy Koehl recently leased space in the Southside Mall and opened a new business. Koehl's Doll Shop. Business has been good, but Kashl frequently runs out of cash. This has necessitated late payment on certain orders, which is beginning to cause a problem with suppliers. Koehl plans to borrow from the bank to have cash ready as needed, but first she needs a forecast of just how much she must borrow. Accordingly, she has asked you to prepare a cash budget for the critical pened around Christmas, when needs will be especially high Sales are made on a cash basis only. Koehl's purchases must be paid for during the following month. Koehl pays herself a salary of $4.600 per month, and the rent is $2.400 per month. In addition, she must make a tax payment of $13.000 in December The current cash on hand (on December 1) is $450, but Kohl has agreed to maintain an average bank balance of $6.500- her target cash balance. (Disregard the amount in the cash register which mignficant because Koehl keeps only a small amount on hand in order to lessen the chances of robbery) The estimated sales and purchases for December January and February are shown belowe Purchases during November amounted to $130.000 Sales $130,000 Purchases $35,000 35.000 35,000 50.000 December January February 42.000 The data has been collected in the Microsoft Excel Online fie below Open the spreadsheet and perform the required analysis to anar the question below. a. Prepare a cach budget for December January, and February. Use a minus sign to enter negative values for net cash flows, cumulative NCF values, and leans nanded. if any. If the answer is er, erter "U". De not round intermediate calculations. Round your answers to the nearest dollar Collections and Purchas Sales Purchas Reyments for purchases Rant 1 1 $ 5 1 $ Cash at start of forecast $ Netcash flow Cumulative NCF Target cash balance Surplus cash or loans S $ $ December $ S S S January *** February Numeric field Suppose Kall starts selling on a credit hasis on December 1. giving customers 30 days to pay All customers accept these terms, and all other facts in the problem are unchanged. What would the company's lean requirements be at the end of December in this case? (Hint: The calculations required to answer this question are minimal) Use a minus sign to enter a negative value for loan requirements. Do not round intermediate calculations, found your answer to the nearest dolar Excel Online Structured Activity: Cash Budgeting Dorothy Koehl recently leased space in the Southside Mall and opened a new business, Koehl's Doll Shop. Business has been good, but Koehl frequently runs out of cash. This has necessitated late payment on certain orders, which is beginning to cause a problem with suppliers. Koehl plans to borrow from the bank to have cash ready as needed, but first she needs a forecast of just how much she must borrow. Accordingly, she has asked you to prepare a cash budget for the critical period around Christmas, when needs will be especially high. Sales are made on a cash basis only. Koehl's purchases must be paid for during the following month. Koehl pays herself a salary of $4,600 per month, and the rent is $2,400 per month. In addition, she must make a tax payment of $13,000 in December. The current cash on hand (on December 1) is $450, but Koehl has agreed to maintain an average bank balance of $6,500 - this is her target cash balance. (Disregard the amount in the cash register, which is insignificant because Koehl keeps only a small amount on hand in order to lessen the chances of robbery.) The estimated sales and purchases for December, January, and February are shown below. Purchases during November amounted to $130,000. December Sales $130,000 Purchases $35,000 The estimated sales and purchases for December, January, and February are shown below. Purchases during November amounted to $130,000. December January February Sales $130,000 50,000 62,000 Purchases $35,000 35,000 35,000 57 The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below. X Open spreadsheet a. Prepare a cash budget for December, January, and February. Use a minus sign to enter negative values for net cash flows, cumulative NCF values, and loans needed, if any. If the answer is zero, enter "0". Do not round intermediate calculations. Round your answers to the nearest dollar. COM HURD, Lunave veta, a intermediate calculations. Round your answers to the nearest dollar. Collections and Purchases: Sales Purchases $ Payments for purchases $ Salaries $ $ Rent Taxes $ Total payments $ Cash at start of forecast S Net cash flow $ Cumulative NCF Target cash balance Surplus cash or loans $ $ December sve, any, we anancia IV, GIRL $ $ $ $ $ $ $ $ M January ww $ $ $ $ $ $ February FRALTUMIR Total payments Cash at start of forecast $ Net cash flow $ $ Cumulative NCF Target cash balance Surplus cash or loans needed $ Check My Work $ 44 Reset Problem " $ 45 MA S S b. Suppose Koehl starts selling on a credit basis on December 1, giving customers 30 days to pay. All customers accept these terms, and all other facts in the problem are unchanged. What would the company's loan requirements be at the end of December in this case? (Hint: The calculations required to answer this question minimal.) Use a minus sign to enter a negative value for loan requirements. Do not round intermediate calculations. Round your answer to the nearest dollar
