Excel Project.REQUIREDa. Create a 12-month cash flow budget in Excel using the following a...

Excel Project.

REQUIRED

a. Create a 12-month cash flow budget in Excel using the following assumptions:

• Initial sales of $5 million, with forecasted monthly growth of 1%

• 40% of each month’s sales for cash; 30% collected the following month; 20% collected 2 months later; 8% collected 3 months later; and 2% never collected

• Initial cash balance of $350,000

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b. Add a “spinner” to your spreadsheet that will enable you to easily change forecasted monthly sales growth to range from 0.5% to 1.5% in increments of 0.1%.

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c. Add a scroll bar to your spreadsheet that will let you modify the amount of initial sales to vary from $4 million to $6 million in increments of $100,000.

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d. Design appropriate data entry and processing controls to ensure spreadsheet accuracy.

(Hint: For help on steps b and c, see the article “Dial a Forecast,” by James A. Weisel, in the December 2006 issue of the Journal of Accountancy. The Journal of Accountancy is available in print or online at the AICPA’s Web site: www.aicpa.org.)*

* Life-long learning opportunity: see p. xxii in preface.