Please help answer E-H on the second page posted under "Spreadsheet Hints"!
Delbert Corporation prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparation of the master budget for the first quarter of 2019: a. As of December 31, 2018 (the end of the prior quarter), the company's general ledger showed the following account balances: Credits Debits $10,000 60,000 40,000 90,000 Cash Accounts Receivable Inventory Plant and Equip (net) Accounts Payable Short-term Notes Payable Capital Stock Retained earnings $25,000 15,000 115.000 45,000 $200.000 $200.000 b. Actual sales for December and budgeted sales for the next four months are as follows: December, 2018 January, 2019 February, 2019 March, 2019 April, 2019 $80,000 -110,000 160.000 _70,000 _40,000 c. Sales are 30 percent for cash and the rest on account. All sales on account are collected the month following sale. The accounts receivable on December 31 are a result of December credit sales. d. The company's gross profit rate is 52 percent of sales. e. Monthly expenses are budgeted as follows: salaries and wages, $9,000 per month; rent, $20,000 per month; utilities, 1 percent of sales; depreciation, $5,000 per month; other expense, 2 percent of sales; and advertising, $15,000 per month. f. At the end of each month, inventory is to be on hand equal to 30 percent of the following month's sales needs, stated at cost. g. Thirty percent of a month's inventory purchases are paid for in the month of purchase; the rest is paid for in the following month. h. During January, the company will purchase a new computer for $15,000 in cash. During February, other equipment will be purchased for cash at a cost of $20,000. Assume there will be no equipment purchases in March 2019. i. During February and March, the company will declare and pay $15,000 in cash dividends per month. Assume no dividends will be paid in January. j. The company must maintain a minimum cash balance of $7,500. An open line of credit is available at a local bank for any borrowing that may be needed during the quarter. All borrowing is done at the beginning of a month, and all repayments are made at the end. Borrowings and repayments of principal must be in multiples of $1,000. Interest is paid at the end of each month. The interest rate is 12 percent per annum. (Figure interest in whole months, e.g., 1/12, 2/12.) Required: Prepare an interactive budgeting spreadsheet. It should automatically update when changes are made to the input data, such as changes in sales forecasts, equipment purchases, etc. Spreadsheets Hints e. 1. Create a worksheet for inputs that includes all potential variables that can be changed. Label the worksheet tab as "inputs." 2. Create a worksheet for each of the different budgets. Label the tabs appropriately. The following budgets should be included: a. Sales Budget b. Inventory Purchases Budget c. Selling and Administrative Budget d. Cash Collections from Customers Schedule Cash Paid for Inventory Purchases Schedule f. Cash Budget g. Budgeted Income Statement h. Budgeted Balance Sheet 3. Each budget should: a. be on a separate worksheet b. have a heading centered over the rest of the budget that includes the following: i. Name of Company ii. Name of Budget iii. Date: _March 31, 2019" or "For the Quarter ended March 31, 2019" c. be prepared on the monthly basis with a total column for the quarter. The budgeted income statement and budgeted balance sheet should be quarterly (not monthly). 4. All worksheets should be interactive (i.e. all worksheet pages except the Input worksheet, should be formula-driven). 5. We will use the following to grade the project: You will lose 10 points if you do not have separate worksheets for each budget. b. You will lose 15 points if the project is late. c. You will lose up to 20 points if your worksheets are not interactive. d. You will lose up to 20 points on the layout. You will lose 15 points for not doing a cash budget. f. You will lose 15 points for not doing a budgeted income statement. g. You will lose 15 points for not balancing your budgeted balance sheet. h. You will lose points based on accuracy also. 6. Email me your file. Label it using your last name followed by your first name. For example, my file would be names a. e. Hints for Creating Interactive Cash Budget 1. To calculate borrowings to the nearest thousands, you may use the ROUNDUP function. 2. To calculate repayments, you may use the ROUNDDOWN function
