Question

Given the numbers from the grey shaded boxes in the first two pictures, are the numbers for each month, beginning at 1. schedule of cash collections and ending at 4. cash budget, correct?

70 7 .00 70 Formatting Table Clipboard & Font Alignment Number Styles 55 X for ✓ co A B F G H D E Atlanta Corporation Balance Sheet December 31, 2018 $ $ Assets: Cash Accounts Receivable Inventory Prop, Plant & Equip PP&E Accum. Depr. 155,000 57,750 44,055 450,500 (270,300) Liabilities: Accounts Payable Taxes Payable Total Liabilities 75,290 15,000 90,290 $ - Ovo AWN $ Stockholders' Equity: Capital Stock Retained Earnings Total Equity 135,000 211,715 346,715 $ Total Assets $ 437,005 Total Liabilities & Equity S 437,005 Ending Inventory Policy: Month-end inventory balance as % of next month's cost of goods sold: 55% Worksheet

Answer 1

D E F . B C Schedule of cash collections | January February $200,250 $215,000 March $225,500 1st Quarter $640,750 3 Budgeted Monthly Sales 5 Cash Sales 6 Current month Credit Sales 7 Prior month Credit Sales 8 Total Cash Collections $50,063 $53,750 $97,622 $104,813 $57,750 $52,566 $205,434 $211,128 $56,375 $109,931 $56,438 $222,744 $160,188 25%cash $312,366 0-65% $166,753 1-35% $639,306 10 Schedule of Inventory Purchases Budget January February March Budgeted cost of goods sold $80,100 $86,000 $90,200 13 Add: Ending Inventory $47,300 $49,610 | $50,710 14 Total Needs $127,400 $135,610 $140,910 15 Less: Beginning Inventory $44,055 $47.300 $49,610 16 Required Inventory purchases $83,345 $88,310 | $91,300 1st Quarter $256,300 $50,710 $307,010 $44,055 $262,955 Schedule of cash disbursements - Inventory January February March 20 Prior month purchases $75,290 $75,011 $79,479 21 Current month purchases $8.335 $8,831 $9,130 22 Total cash disbursed - inventory $83,625 $83,842 $88,609 1st Quarter $229,780 1-90% $26,296 0-10% $256,075 Schedule of cash disbursements - Operating Expenses January February March Salaries $85,000 $85,000 $85,000 Rent $4,500 $4,500 $4,500 28 Other expesnes $38,048 $40,850 $42,845 29 Total cash disbursed - expenses $127,548 $130,350 $132,345 1st Quarter $255,000 $13,500 $121,743 $390,243 1st Quarter $155,000 $639,306 $794,306 Schedule of cash disbursements - Operating Expenses January February March 33 Beginning cash balance $155,000 $149,262 $146,199 34 Add: Cash collections $205,434 $211.128 $222,744 35 Total cash available $360,434 $360,391 | $368,943 36 Less: Cash Disbursements 37 Inventory $83,625 $83,842 $88,609 38 Operating Expenses $127,548 $130,350 $132,345 39 Total Cash Disbursements $211,172 $214,192 $220,954 40 Ending cash balance $149,262 $146,199 | $147,989 $256,075 $390,243 $646,318 $147,989

C Schedule of cash collections January February 200250 215000 March 1st Quarter =SUM(B3:D3) 3 Budgeted Monthly Sales 225500 5 6 7 8 Cash Sales Current month Credit Sales Prior month Credit Sales Total Cash Collections =B3*25% =(B3*75%)*65% =(220000*75%)*35% =SUM(B5B7) =C3*25% =C3*75%)*65% =(B3*75%)*35% =SUM(C5.C7) =D3*25% =(D3*75%)*65% =(C3*75%)*35% =SUM(DSD7) =SUMBS:D5) =SUM(B6:D) =SUM(B7D7) =SUMES:E7) 25%cash 0-65% 1-35% 11 12 Budgeted cost of goods sold 13 Add: Ending Inventory 14 Total Needs 15 Less: Beginning Inventory 16 Required Inventory purchases Schedule of Inventory Purchases Budget January | February March =B3*40% =C3*40% =D3*40% =C12*55% =D12*55% =(230500*40%)*55% =B12+B13 =C12+C13 =D12+D13 =B12*55% =B13 =C13 =B14-B15 =C14-C15 =D14-D15 1st Quarter =SUM(B12:012) =D13 =E12+E13 =B15 =E14-E15 17 20 Prior month purchases 21 Current month purchases 22 Total cash disbursed - inventory Schedule of cash disbursements - Inventory January February March 75290 =B16*90% =C16*90% =B16*10% =C16*10% =D16*10% =SUM(B20-B21) =SUM(C20:C21) =SUM(D20-D21) 1st Quarter =SUM(B20-D20) 1-90% =SUM(B21:D21) 0-10% =SUME20-E21)

Schedule of cash disbursements - Operating Expenses January February March 85000 85000 85000 4500 =B3*19% =C3*19% =D3*19% =SUM(B26B28) =SUM(C26:C28) =SUM(D26D28) 4500 26 Salaries 27 Rent 28 Other expesnes 29 Total cash disbursed - expenses 4500 1st Quarter =SUM(B26D26) =SUM(B27:D27) =SUM(B28:D28) =SUM(E26-E28) Schedule of cash disbursements - Operating Expenses January February March 155000 =B40 =C40 =B8 =C8 =D8 =B33+B34 =C33+C34 =D33+D34 1st Quarter =B33 =SUM(B34:D34) =E33+E34 33 Beginning cash balance 34 Add: Cash collections 35 Total cash available 36 Less: Cash Disbursements 37 Inventory 38 Operating Expenses 39 Total Cash Disbursements 40 Ending cash balance =B22 =B29 =B37+B38 =B35-B39 =C22 =C29 =C37+C38 =C35-C39 =D22 =D29 =D37+D38 =D35-D39 =SUM(B37-D37) =SUM(B38-D38) =E37+E38 =E35-E39 41

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