1 5 8 B D E F G H 1 S&P Enterprises needs a cash budget for March. The following information is available! 2 2 3 Data January February March 4 Actual January and February and expected March sales: Cash sales $1,600 $3,750 $5,100 6 Sales on account 25,000 30,000 40,000 7 Total Sales $26,600 $33,750 $45,100 8 9 Accounts Receivable Collections: 10 Month of sale 15% 11 Month following sale 60% 12 Second month following sale 22% 13 Uncollectible 3% 14 Accounts payable for inventory purchases, March 1 balance $ 10,500 15 Budgeted inventory purchases in March $23,500 16 Inventory payments: 17 Month of purchase 60% 18 Month following purchase 40% 19 20 Total budgeted selling & administrative expenses in March (including depreciation) $12,500 21 Budgeted depreciation in March (included in total selling and admin exp) $3,200 22 23 Other budgeted cash disbursements in March 24 Equipment purchases $14,000 25 Dividends to be paid $2,000 26 27 Minimum cash balance to be maintained $10,000 28 March 1 cash balance 1 $11,500 29 March 1 outstanding borrowings 0 SO 30 March 1 interest due SO 31 32 The company has a line of credit available to bolster the cash balance as needed. 33 34 When preparing budgets, the company maintains their data on a separate sheet from the actual budget and schedules. 35 36 Required: 37 Click the Schedules and Cash Budget tab to prepare the following: 38 1. Schedule of expected cash collections for March. 39 2. Schedule of expected cash disbursements for inventory purchases for March. 40 3. Cash budget for March. Indicate in the financing section any borrowing that will be needed in March. Assume that any interest will not be paid until the following 41 month. 42 43 (Use cells A4 to B31 from the given information to complete this question.) 44