Question
Prepare a schedule of expected cash collections. Prepare a schedule of expected cash disbursements for purchase of materials. Prepare a cash budget. This is information
- Prepare a schedule of expected cash collections.
- Prepare a schedule of expected cash disbursements for purchase of materials.
- Prepare a cash budget.
This is information needed for answers---------
S&P Enterprise needs a cash budget for March. The following information is available.
Data:
Actual January and February and expected March sales:
Cash Sales: Jan - $1600, Feb-$3750, Mar-$5100
Sales on Account: Jan-25,000, Feb- 30,000, Mar - 40,000
Total Sales: Jan-26,600, Feb - 33,750, Mar-45100
Accounts receivable Collections
Month of sale: Jan -15%
Month following sale: Jan-60%
Second month following sale: Jan- 22%
Uncollectible: Jan-3%
Accounts payable for inventory purchase, March 1 Balance: Jan- $10,500
Budgeted Inventory purchases in March: Jan-23,500
Inventory Payments:
- Month of purchase: Jan- 60%
- Month following purchase: Jan-40%
Total Budgeted selling & administrative expenses in March: Jan - 12,500
Budgeted selling & administrative depreciate in March: jan-3200
Other budgeted cash disbursements in March
- Equipment purchases: jan-14,000
- Dividend to be paid: Jan- 2,000
Minimum cash balance to be maintained: Jan- $10,000
March 1 Cash Balance: Jan- $11,500
March 1 outstanding borrowings: Jan- $0
March 1 Interest due: Jan- $0
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:
- Schedule of expected cash collections for March
- Schedule of expected cash disbursements for inventory purchase for March
- 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.
-----Below are the questions needing answers------
Schedules and Cash Budget Tab:
Expected Cash Collections:
March Cash Collections: ?
March Collections on Account:
January sales: ?
February sales: ?
March Sales: ?
Total Cash Collections: ?
Payments to Suppliers:
Accounts payable for inventory purchases, beginning balance:?
March Purchases: ?
Total Cash Payments: ?
S&P Enterprises Cash Budget:
Cash Balance, March 1: ?
Add Cash receipts:
- Collections from Customers: ?
Total Cash Available: ?
Less Disbursements:
- Payments to suppliers: ?
- Selling and administrative expenses: ?
- Equipment purchases: ?
- Equipment purchases: ?
- Dividends Paid: ?
Total Disbursements: ?
Preliminary Cash Balance: ?
Financing:
- Additional Loan?
- Loan Repayments: ?
- Intrest: ?
Total Financing: ?
Cash Balance, March 31: ?
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