Requirements: Please use the data from the following table to complete the cash budget in Excel spreadsheets. To complete the cash budget, you will have to work on the schedules of expected cash collections and payments first. Please set formulae by referencing to the data in Excel spreadsheets.

The following table lists the data from the budget of Ritewell Publishers. 55% the companys sales are for cash on the nail; the other 45% are paid for with a one-month delay. The company pays all its credit purchase with a one-month delay. Credit purchases in January were $30,000, and total sales in January were $180,000.

We make these assumptions to simplify the analysis:

* Ritewell Publishers has an open line of credit with its bank, which can be used as needed to bolster the cash position.

* The company desires to maintain an $18,000 minimum cash balance at the end of each month. Therefore, borrowing must be sufficient to cover the cash shortfall and to provide for the minimum cash balance of $18,000.

* All borrowings and repayments must be in multiples of $1,000 amounts, and interest is 6 percent per annum.

* Interest is computed and paid on the principal during the borrowing period.

* All borrowings take place at the beginning of a month, and all repayments are made at the end of a month. The company will take a loan at the beginning of February, repaying part of the loan at the end of March and the remaining balance at the end of April. At the end of March, the company will repay the loan as much as possible but also keeps the minimum cash balance of $18,000. Repayment in March is based on available cash from operating activities. You have to figure out the loan amount and repayment amounts.

* The company pays the selling and administrative expenses, income taxes, dividends, and pays for equipment purchase at the end of a month.

The interest payment made at the end of March is computed as: Principal of the loan x Interest rate on the loan x borrowing period . The interest payment made at the end of April is computed as:

Remaining principal of the loan x Interest rate on the loan x borrowing period .

Because the interest rate on the loan is an annual rate, the borrowing period will be adjusted to a fraction of 12 months.

Ritewell Publishers Sales, purchase, and other budgets January February March April 180,000 $200,000 s220,000 $180,000 Total sales Purchases of material 80,000 30,000 30,000 14,000 3,000 0 For cash 70,000 40,000 30,000 14,000 3,000 100,000 60,000 40,000 30,000 14,000 3,000 30,000 For credit Selling and admin. expenses Income taxes Dividends Equipment purchase 0