The Master Budget Incomplete cash budget You recently began a job as an accounting intern at Rockwall Adventures. Your first task was to help prepare the cash budget for February and March. Unfortunately, the computer with the budget file crashed, and you did not have a backup or even a hard copy. You ran a program to salvage bits of data from the budget file. After entering the following data in the budget, you may have just enough information to reconstruct the budget. Rockwall Adventures eliminates any cash deficiency by borrowing the exact amount needed from State Street Bank, where the current interest rate is 6%. Rockwall Adventures pays interest on its outstanding debt at the end of each month. The company also repays all borrowed amounts at the end of the month as cash becomes available The salvaged data can be found on the "CASHBUDGET" tab. Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong Requirement 1 Complete the cash budget. a. Use parentheses or a minus sign for any cash deficiencies. b. Enter cash inflows as positive values. c. In the "Financing" section, enter borrowings and repayments as positive values. The "Total effects of financing" is entered as a positive if the borrowings are greater then the payments; and entered as a negative if the payments are greater than the borrowings. d. For amounts with a zero balance, make sure to enter"-0" in the appropriate cell. The partial cash budget follows Rockwall Adventures Combined Cash Budget February and March Februar March $16,900 $ Beginning cash balance Plus: Cash collections Plus: Cash from sale of plant assets Total cash available Less: Cash payments (purchase inventory) Less: Cash payments (operating expenses) Total cash payments (1) Ending cash balance before financing Minimum cash balance desired Cash excess (deficiency) Financing: ?80,000 2,000 0 $107,300 $ ? $41,400 47,700 $98,400 $ ?$25,100 21,00021,000 Plus: New borrowings Less: Debt repayments Less: Interest payments (2) Total effects of financing Ending cash balance (1) + (2) (Always use cell reterences and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong.) Rockwall Adventures Combined Cash Budget February and March Februar March $16,900 Beginning cash balance Plus: Cash collections Plus: Cash from sale of plant assets Total cash available Less: Cash payments (purchase inventory) Less: Cash payments (operating expenses) Total cash pay (1) Ending cash balance before financing Minimum cash balance desired Cash excess (deficiency) Financing: 80,000 2,000 0 $107,300 $41,400 47,700 98,400 ments S 25,100 21,000 21,000 Plus: New borrowings Less: Debt repayments Less: Interest payments (2) Total effects of financing Ending cash balance (1)(2)
