Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please Solve! i need the answers to be in a formula format. For example: =B1/B2 Thanks! 1 S & P Enterprises needs a cash budget

Please Solve! i need the answers to be in a formula format. For example: =B1/B2
Thanks!
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
1 S \& P Enterprises needs a cash budget for March. The following information is available. \begin{tabular}{ll} \hline 2 & \\ 3 & Data \\ 4 & Actual January and February and expected March sales: \end{tabular} January February March 5 Cash sales 6 Sales on account 7 Total Sales \begin{tabular}{lrrr|rr} $ & 1,600 & $ & 3,750 & $5,100 \\ \hline \end{tabular} 8 Accounts Receivable Collections: \begin{tabular}{|r|l|r|} \hline 10 & Month of sale & 15% \\ \hline 11 & Month following sale & 60% \\ \hline 12 & Second month following sale & 22% \\ \hline 13 & Uncollectible & 3% \\ \hline 14 & & 510500 \\ \hline \end{tabular} \begin{tabular}{|l|l} 14 & \\ 15 & Accounts payable for inventory purchases, \\ 16 & Budgeted inventory purchases in March \end{tabular} 17 Inventory payments: \begin{tabular}{ll} 18 & Month of purchase \\ \hline 19 & Month following purchase \\ 20 & \end{tabular} $10,590 $23,500 Total budgeted selling \& administrative expenses in March 22 Budgeted selling \& administrative depreciation in March 60% Other budgeted cash disbursements in March \begin{tabular}{lrr} \hline Equipment purchases & $14,000 \\ \hline Dividends to be paid & $2,000 \\ & \\ \hline Minimum cash balance to be maintained & $10,000 \\ \hline March 1 cash balance & $11,500 \\ March 1 outstanding borrowings & $0 \\ March 1 interest due & $0 \end{tabular} 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. 3. Cash budget for March. Indicate in the financing section any borrowing that will be needed in March. Assume that any interest will not be paid until the following month. January sales February sales March sales Total cash collections 9 Payments to suppliers: 10 Accounts payable for inventory purchases, beginning balance 11 March purchases 12 Total cash payments 13 S \& P Enterprises Cash Budget For the Month of March Cash balance, March 1 Add cash receipts: Collections from customers 21 Total cash available before current financing 22 Less disbursements: 23 Payments to suppliers Selling and administrative expenses Equipment purchases Total disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments Interest 33 Total financing Cash balance, March 31

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting Chapters 1-9

Authors: James A. Heintz, Robert W. Parry

22nd Edition

1305666186, 9781305666184

More Books

Students also viewed these Accounting questions