Question

3 ? X . HOME Cash Budget with Supporting Cash Collections and Disbursements Schedules - Excel INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW - 6 Sign In FILE Caibri B TU. - A points tina Alignment Number Conditional Format as Cele s Formatting Table Styles Styles Skipped S&P Enterprises needs a cash budget for March. The following information is 1 s & P Enterprises needs a cash budget for March. The following information is available. January February March 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 $ 5,100 30.000 40,000 33.750 $45.100 References 9 Accounts Receivable Collections: 10 Month of sale 11 Month following sale 12 Second month following sale Uncollectible 15% 60% 22% 3% $10,500 $23,500 15 Accounts payable for inventory purchases, March 1 balance 16 Budgeted Inventory purchases in March 17 Inventory payments: Month of purchase 19 Month following purchase 6096 40% 21 Total budgeted selling & administrative expenses in March 22 Budgeted selling & administrative depreciation in March $12,500 $3,200 24 Other budd isch charmante in March .. Budget Data Schedules and Cash Budget-

Answer 1

$5,100 1 Expected cash collections: 2 March cash collections 3 March collection on account: 4 January Sales 5 February Sales 6 March Sales 7 Total Cash Collections $5,500 $18,000 $6,000 $34.600 10 Payment to suppliers: 11 Accounts payable for inventory purchases, beginning balance 12 March purchases 13 Total cash payments $10,500 $14,100 $24.600

17 18 Amount $11,500 $34.600 $46.100 Α S&P Enterprises Cash Budget For the month of March 19 Particulars 20 Cash Balance, March 1 21 Add: Cash Receipts: 22 Collections from customers 23 Total cash Available 24 Less Disbursements: 25 Payments to suppliers 26 Selling and administrative expenses 27 Equipment purchases 28 Dividends paid 29 Total Disbursements 30 Cash before Financing 31 Financing 32 Borrowings/repayments 33 Cash Balance, March 31 $24.600 $12.500 $14.000 $2.000 $53.100 ($7.000) $17.000 $10,000

_______________________________________________________________________

Working as follows:

1 5100 Expected cash collections: 2 March cash collections 3 March collection on account: 4 January Sales 5 February Sales 6 March Sales 7 Total Cash Collections =25000*22% =30000*60% =40000*15% =SUM(B2:B6 9 10 Payment to suppliers: 11 Accounts payable for inventory purchases, beginning balance 12 March purchases 13 Total cash payments 10500 =23500*60% =B11+B12

LBC S&P Enterprises Cash Budget For the month of March Amount 11500 34600 =C20+C22 19 Particulars 20 Cash Balance, March 1 21 Add: Cash Receipts: 22 Collections from customers 23 Total cash Available 24 Less Disbursements: 25 Payments to suppliers 26 Selling and administrative expenses 27 Equipment purchases 28 Dividends paid 29 Total Disbursements 30 Cash before Financing 31 Financing 32 Borrowings/repayments 33 Cash Balance, March 31 24600 12500 14000 2000 =SUMB25-B28) =C23-C29 17000 =C32+C30

Answer 2

cash budget for month of march

for selling and administrative expenses 12,500- 3,200= 9,300