Download the Applying Excel form and enter formulas in all cells that contain question marks.

For example, in cell B26 enter the formula "= B5".

Check your worksheet by changing the budgeted unit sales in Quarter 2 of Year 2 in cell C5 to 75,000 units. The required production for the year should be 274,000 units. The cost of raw materials to be purchased for the year should be $1,106,800, whereas the total cash disbursements for the year should be $1,095,980. If you do not get this answer, find the errors in your worksheet and correct them.

Save your completed Applying Excel form to your computer and then upload it here by clicking Browse. Next, click Save. You will use this worksheet to answer the questions in Part 2.

Construct the schedule of expected cash collections Year 2 Quarter 2 3 1 2 4 Year ? ? ? ? Accounts receivable, beginning balance First-quarter sales Second-quarter sales Third-quarter sales Fourth-quarter sales Total cash collections ? ? ? ? ? ? ? ? ? ? ? ? ? ? Construct the production budget 1 3 4 Year ? Budgeted unit sales Add desired finished goods inventory Total needs Less beginning inventory Required production ? ? ? ? ? Year 2 Quarter 2 3 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Year 3 Quarter 1 ? ? ? ? ? ? ? Construct the raw materials purchases budget 1 4 Year Required production (units) Raw materials required to produce one unit Production needs (pounds) Add desired ending inventory of raw materials (pounds) Total needs (pounds) Less beginning inventory of raw materials (pounds) Raw materials to be purchased Cost of raw materials per pound Cost of raw materials to be purchased ? ? ? ? ? ? ? ? ? Year 2 Quarter 2 3 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Year 3 Quarter 1 ? ? ? ? ? ? ? ? ? ? ? ? Construct the schedule of expected cash payments Year 2 Quarter 2 3 4 Year ? ? ? ? Accounts payable, beginning balance First-quarter purchases Second-quarter purchases Third-quarter purchases Fourth-quarter purchases Total cash disbursements