Question

all the same question

1. Prepare a sales budget, including a schedule of expected cash collections 2. Prepare a direct materials budget, including a schedule of expected cash disbursements for purchases of materials 3. Prepare a cash budget

Answer 1

1.

Expected Cash Collections :	Amount $
March Cash Collections	$          5,100
March Cash Collections on account
January Sales	$          5,500
February Sales	$        18,000
March Sales	$          6,000
Total Cash Collection	$        34,600

2.

Expected Cash Disbursement for inventory purchase of March	Amount $
Accounts payable for inventory purchase	$          4,200
March Purchase	$        14,100
Total Cash Payments	$        18,300

3.

S & P Enterprises
Cash Budget
for month of March	Amount $	Amount $
Cash Balance, March 1		$         11,500
Add: Cash Receipts
Collection from Customers		$         34,600
Total Cash available before current financing		$         46,100
Less: Disbursements
Payment to suppliers	$                   18,300
Selling and administrative exps	$                   12,500
Equipment purchases	$                   14,000
Dividend Paid	$                     2,000
Total Disbursements		$       (46,800)
Excess (deficiency) of cash available for disbursements		$             (700)
Financing :
Borrowings		$         10,700
Repayments		$                   -
Interest		$                   -
Total Financing		$         10,700
Cash Balance, March 31		$         10,000