Question

S&P Enterprises has provided data from the first three months of the year. The Controller has asked you to prepare the Cash Budget and the related Schedules for Expected cash collections and Payments to suppliers. Use the Information Included in the Excel Simulation and the Excel functions described below to complete the task. . Cell Reference: Allows you to refer to data from another cell in the worksheet. From the Excel Simulation below, if in a blank cell on the Budget Data tab, "=B5" was entered the formula would output the result from cell B5, or 1,600 In this example. • Multi-Tab Cell Reference: Allows you to refer to data from another cell in a separate tab in the worksheet. When using the multi-tab cell reference, type the equal sign first, then click on the other tab and then click on the cell you want to reference. The syntax of a multi-tab cell reference looks different than a normal cell reference, since it includes the tab name surrounded by apostrophes and also an exclamation point before the cell location. From the Excel Simulation below, if in a blank cell on the Schedules and Cash Budget tab "="Budget Data'!C7" was entered, the formula would output the result from cell C7 in the Budget Data tab, or 33,750 In this example. • Basic Math functions: Allows you to use the basic math symbols to perform mathematical functions. You can use the following keys: - (plus sign to add).- (minus sign to subtract). (asterisk sign to multiply). and / (forward slash to divide). From the Excel Simulation below. If in a blank cell on the Budget Data tab, "=B15-B16" was entered, the formula would add the values from those cells and output the result, or 34.000 In this example. If using the other math symbols the result would output an appropriate answer for its function. • SUM function: Allows you to refer to multiple cells and adds all the values. You can add Individual cell references or ranges to utilize this function. From the Excel Simulation below. If in a blank cell =SUM(B10.B11,B12)" was entered, the formula would output the result of adding those three separate cells, or 97% In this example. Similarly. If in a blank cell "=SUM(B10:B12)" was entered, the formula would output the same result of adding those cells, except they are expressed as a range in the formula, and the result would be 97% In this example. X 5 X FILE 2 Cash Budget with Supporting Cash Collections and Disbursements Schedules - Excel ? - HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In Calibri 11 AA = % D B IU . B. 3 4 . Alignment Number Conditional Format as Cell Cells Editing - Formatting Table Styles Font Styles X o S&P Enterprises needs a cash budget for March. The following information is Clipboard IS & P Enterprises needs a cash budget for March. The following information is available. January February March 3 Data 4 Actual January and February and expected March sales: 5 Cash sales 6 Sales on account 7 Total Sales $ 1,600 $ 25,000 - $ 26,600 3,750 30,000 33,750 S 5,100 40,000 S 45,100 9 Accounts Receivable Collections: 10 Month of sale Month following sale Second month following sale Uncollectible 15% 60% 22% 3% dlance $10,500 $23,500 15 Accounts payable for inventory purchases, March 1 balance 16 Budgeted inventory purchases in March 17 Inventory payments: 18 Month of purchase 19 Month following purchase 60% 40% 21 Total budgeted selling & administrative expenses in March 22 Budgeted selling & administrative depreciation in March $12,500 $3,200 24 Other buidatorrschdichureements in March ... Budget Data Schedules and Cash Budget ... | READY - + 100%

Answer 1

Cash Collections Budget
	March
Cash Sales	$                5,100
Collection from March Sales	$                6,000	=40000*15%
Collection from February Sales	$              18,000	=30000*60%
Collection from January Sales	$                5,500	=25000*22%
Total Cash Collections	$              34,600

Cash Payments for Purchases
	March
Accounts Payable	$              10,500
Current month payments	$              14,100	=23500*60%
Total Cash payments	$              24,600

Cash Budget
	March
Beginning Balance	$        11,500.00
Cash Collections	$        34,600.00
Total Cash Available	$        46,100.00
Cash Disbursements
Purchases	$        24,600.00
Selling and Administrative expenses	$           9,300.00
Purchase of Equipment	$        14,000.00
Dividend Paid	$           2,000.00
Total Cash Disbursements	$        49,900.00
Preliminary Ending Balance	$         -3,800.00
Borrowing/ (Repayment)	$        13,800.00
Ending Balance	$        10,000.00