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.

Answer 1

Formulas are showing in the corresponding cell

	A	B	C	D
1	Expected Cash Collections :	Amount $	Formula
2	March Cash Collections	$          5,100	='Budget Data'!D5
3	March Cash Collections on account
4	January Sales   ($25,000 * 22%)	$          5,500	='Budget Data'!B6*'Budget Data'!B12
5	February Sales ( $30,000 * 60%)	$        18,000	='Budget Data'!C6*'Budget Data'!B11
6	March Sales ( $40,000 * 15%)	$          6,000	='Budget Data'!D6*'Budget Data'!B10
7	Total Cash Collection	$        34,600	SUM(B2:B6)
8
9	Payments to Suppliers	Amount $
10	Accounts payable for inventory purchase ($10,500* 40%)	$          4,200	='Budget Data'!B15*'Budget Data'!B19
11	March Purchase ($23,500 * 60%)	$        14,100	='Budget Data'!B16*'Budget Data'!B18
12	Total Cash Payments	$        18,300	SUM(B10:B11)
13
14	S & P Enterprises
15	Cash Budget
16	for month of March	Amount $	Amount $	Formula
17
18	Cash Balance, March 1		$              11,500	='Budget Data'!B29
19	Add: Cash Receipts
20	Collection from Customers		$              34,600	=C7
21	Total Cash available before current financing		$              46,100	=C18+C20
22	Less: Disbursements
23	Payment to suppliers	$        18,300		=C12
24	Selling and administrative exps	$        12,500		='Budget Data'!B21
25	Equipment purchases	$        14,000		='Budget Data'!B25
26	Dividend Paid	$          2,000		='Budget Data'!B26
27	Total Disbursements		$            (46,800)	=SUM(B23:B26)
28	Excess (deficiency) of cash available for disbursements		$                  (700)	=C21+C27
29	Financing :
30	Borrowings		$              10,700
31	Repayments		$                       -
32	Interest		$                       -
33	Total Financing		$              10,700	=SUM(C30:C32)
34	Cash Balance, March 31		$              10,000	=C28+C33