You are provided with the following information taken from Windsor, Inc s March 31, 2022, balance sheet Cash $ 11,600 Accounts receivable 20,180 Inventory 36,010 Property, plant, and equipment, net of depreciation 120,800 Accounts payable 22,560 Common stock 154,500 Retained earnings 11,680 Additional information concerning Windsor, Inc is as follows 1 Gross profit is 25 of sales 2 Actual and budgeted sales data March (actual) $48,200 April (budgeted) 70,700 3 Sales are both cash and credit Cash collections expected in April are March $19,280 (40 of $48,200) April 42,420 (60 of $70,700) $61,700 4 Half of a months purchases are paid for in the month of purchase and half in the following month Cash disbursements expected in April are Purchases March $22,560 Purchases April 28,320 $50,880 5 Cash operating costs are anticipated to be $12,630 for the month of April 6 Equipment costing $2,560 will be purchased for cash in April 7 The company wishes to maintain a minimum cash balance of $12,190 An open line of credit is available at the bank All borrowing is done at the beginning of the month, and all repayments are made at the end of the month The interest rate is 13 per year, and interest expense is accrued at the end of the month and paid in the following month Prepare a cash budget for the month of April Determine how much cash Windsor, Inc must borrow, or can repay, in April BELOW are the options for the drop down menu on the cash budget sheet WINDSOR, INC Cash Budget For the Month Ending April 30, 2022 V Beginning cash balance 11600 Add Cash receipts April cash purchases March cash purchases Total receipts Total available cash March cash purchases Borrowings Payment of March purchases March cash purchases Total disbursements Cash operating costs Cash sales Ending cash balance Financing Collections from customers Excess (deficiency) of available cash over disbursements Cash disbursements April cash purchases Total receipts Cash receipts Total available cash Equipment purchase Repayments Beginning cash balance

You are provided with the following information taken from Windsor, Inc.s March 31, 2022, balance sheet. Cash $ 11,600 Accounts receivable 20,180 Inventory 36,010 Property,

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Posted on Sep 04, 2024

Half of a months purchases are paid for in the month of purchase and half in the following month. Cash disbursements expected in April are:

Purchases March

Purchases April

You are provided with the following information taken from Windsor, Inc.s March 31, 2022, balance sheet.

Cash		$ 11,600
Accounts receivable		20,180
Inventory		36,010
Property, plant, and equipment, net of depreciation		120,800
Accounts payable		22,560
Common stock		154,500
Retained earnings		11,680

Additional information concerning Windsor, Inc. is as follows.

1.	Gross profit is 25% of sales.
2.	Actual and budgeted sales data:
	March (actual)	$48,200
	April (budgeted)	70,700

3.	Sales are both cash and credit. Cash collections expected in April are:
	March	$19,280	(40% of $48,200)
	April	42,420	(60% of $70,700)
		$61,700

5.		Cash operating costs are anticipated to be $12,630 for the month of April.
6.		Equipment costing $2,560 will be purchased for cash in April.
7.		The company wishes to maintain a minimum cash balance of $12,190. An open line of credit is available at the bank. All borrowing is done at the beginning of the month, and all repayments are made at the end of the month. The interest rate is 13% per year, and interest expense is accrued at the end of the month and paid in the following month.

Prepare a cash budget for the month of April. Determine how much cash Windsor, Inc. must borrow, or can repay, in April.

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BELOW are the options for the drop down menu on the cash budget sheet

image text in transcribed

WINDSOR, INC. Cash Budget For the Month Ending April 30, 2022 V Beginning cash balance 11600 Add : Cash receipts April cash purchases March cash purchases Total receipts Total available cash March cash purchases Borrowings Payment of March purchases March cash purchases Total disbursements Cash operating costs Cash sales Ending cash balance Financing Collections from customers Excess (deficiency) of available cash over disbursements Cash disbursements April cash purchases Total receipts Cash receipts Total available cash Equipment purchase Repayments Beginning cash balance