Integrated Excel: Preparing a Cash Budget with Supporting Schedules

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.

Data	January	February	March
Actual January and February and expected March sales:
Cash sales	$ 1,600	$ 3,750	$ 5,100
Sales on account	25,000	30,000	40,000
Total Sales	$ 26,600	$ 33,750	$ 45,100

Accounts Receivable Collections:
Month of sale	15%
Month following sale	60%
Second month following sale	22%
Uncollectible	3%
Accounts payable for inventory purchases, March 1 balance	$ 10,500
Budgeted inventory purchases in March	$ 23,500
Inventory payments:
Month of purchase	60%
Month following purchase	40%

Total budgeted selling & administrative expenses in March (including depreciation)	$ 12,500
Budgeted depreciation in March (included in total selling and admin exp)	$ 3,200

Other budgeted cash disbursements in March
Equipment purchases	$ 14,000
Dividends to be paid	$ 2,000

Minimum cash balance to be maintained	$ 10,000
March 1 cash balance	$ 11,500
March 1 outstanding borrowings	$ 0
March 1 interest due	$ 0

The company has a line of credit available to bolster the cash balance as needed.

Required:

Click the Schedules and Cash Budget tab to prepare the following:

1. Schedule of expected cash collections for March.
2. Schedule of expected cash disbursements for inventory purchases for March.
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 month.

Navigation:

1. Use the Open Excel in New Tab button to launch this question.
2. When finished in Excel, use the Save and Return to Assignment button in the lower right to return to Connect.

The company has a line of credit available to bolster the cash balance as needed. Required: Click the Schedules and Cash Budget tab to prepare the following: 1. Schedule of expected cash collections for March. 2. Schedule of expected cash disbursements for inventory purchases for March. \begin{tabular}{|l|l|} \hline 41 & \multicolumn{1}{|c|}{ A } \\ \hline 42 & 3. Cash budget for March. Indicate in the financing section any borrowing that will be needed in Mar \\ \hline 43 & \\ \hline 44 & (Use cells A4 to B31 from the given information to complete this question.) \\ \hline 45 & \\ \hline 46 & Expected cash collections: \\ \hline 47 & March cash collections \\ \hline 48 & March collections on account: \\ \hline 49 & January sales \\ \hline 50 & February sales \\ \hline 51 & March sales \\ \hline 52 & Total cash collections \\ \hline 53 & \\ \hline 54 & Payments to suppliers: \\ \hline 55 & Accounts payable for inventory purchases, beginning balance \\ \hline 56 & March purchases \\ \hline 57 & Total cash payments \\ \hline 58 & \\ \hline \end{tabular} The company has a line of credit available to bolster the cash balance as needed. Required: Click the Schedules and Cash Budget tab to prepare the following: 1. Schedule of expected cash collections for March. 2. Schedule of expected cash disbursements for inventory purchases for March. \begin{tabular}{|l|l|} \hline 41 & \multicolumn{1}{|c|}{ A } \\ \hline 42 & 3. Cash budget for March. Indicate in the financing section any borrowing that will be needed in Mar \\ \hline 43 & \\ \hline 44 & (Use cells A4 to B31 from the given information to complete this question.) \\ \hline 45 & \\ \hline 46 & Expected cash collections: \\ \hline 47 & March cash collections \\ \hline 48 & March collections on account: \\ \hline 49 & January sales \\ \hline 50 & February sales \\ \hline 51 & March sales \\ \hline 52 & Total cash collections \\ \hline 53 & \\ \hline 54 & Payments to suppliers: \\ \hline 55 & Accounts payable for inventory purchases, beginning balance \\ \hline 56 & March purchases \\ \hline 57 & Total cash payments \\ \hline 58 & \\ \hline \end{tabular}