Q. In the above link, though solutions are given, i couldn't understand how opening balance for Feb and March are calculated? and Cash receipts and Cash payments are calculated.

56 PART THREE INFORMATION FOR MANAGING RESOURCES Tilley has asked you to help design a spreadsheet to help with planning for client consultations, purchases of supplies, cash shortages and cash surpluses for next year. The following data are available: Revenue s as follows: (actual) November December January February March S200000 225.000 75000 225 000 200 000 (budget) (budget) (budget) During the past year, 50 per cent of consultation revenue was collected in the month of the veterinary visit, 20 per cent in the following month. 20 per cent in the second month, and 10 per cent was not received. In the budget year, new credit policies are expected to result in collections of 60 per cent, 20 per cent, 10 per cent and 10 per cent, respectively. The cost of veterinary supplies was $75000 in December and is budgeted as $125 000 in February. Half of the suppliers' accounts are paid in the month they are incurred and half in the following month. Salaries of $100 000 per month and other costs of $75 000 are paid in the month they are incurred. Required: 1. Use Excel to create a spreadsheet to complete a cash budget for January to March of the budget year, using the format below. Cash budget January $200 000) February March Opening cash balance Cash received from consultations: Cash Budget: Jan Feb Mar Op. cash balance $(200000) $(282500) $(325000) Cash received: Two months ago 40000 45000 7500 last month 45000 15000 45000 current month 45000 135000 120000 Total cash collection 130000 195000 172500 Cash payment: to suppliers: Previous month 37500 62500 current month 0 62500 0 salary 100000 100000 100000 other costs 75000 75000 75000 Total cash payment (212500) (237500) (237500) Cl. cash balance $(282500) $(325000) $(390000)