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.

ste BIU Alignment Number Cells Editing Conditional Format as Cell Formatting Table Styles Styles lipboard 5 Font 1 fac A B D E S&P Enterprises needs a cash budget for March. The following information is available. January February March Data Actual January and February and expected March sales: Cash sales Sales on account $ 1,600 $ 3,750 $ 5,100 25,000 30,000 40,000 $ 26,600 $ 33,750 $ 45,100 Total Sales Accounts Receivable Collections: Month of sale Month following sale Second month following sale Uncollectible 15% 60% 22% 3% $10,500 $23,500 Accounts payable for inventory purchases, March 1 balance Budgeted inventory purchases in March Inventory payments: Month of purchase Month following purchase 60% 40% Total budgeted selling & administrative expenses in March Budgeted selling & administrative depreciation in March $12,500 $3,200 Other hudgeted cash dichurcements in March Budget Data Schedules and Cash Budget 24 Other budgeted cash disbursements in March 25 Equipment purchases $14,000 26 Dividends to be paid $2,000 27 28 Minimum cash balance to be maintained $10,000 29 March 1 cash balance $11,500 30 March 1 outstanding borrowings $0 31 March 1 interest due $0 32 33 The company has a line of credit available to bolster the cash balance as needed. 34 35 When preparing budgets, the company maintains their data on a separate sheet from the actual budget and schedules. 36 38 37 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. 39 40 41 42 A 4 1 Expected cash collections: 2 March cash collections 3 March collections on account: January sales 5 February sales March sales 7 Total cash collections 6 8 9 Payments to suppliers: 10 Accounts payable for inventory purchases, beginning balance 11 March purchases 12 Total cash payments 13 14 15 S & P Enterprises Cash Budget For the Month of March 16 17 18 Cash balance, March 1 19 Add cash receipts: 20 Collections from customers 21 Total cash available before current financing 22 Less disbursements: 23 Payments to suppliers 24 Selling and administrative expenses Budget Data Schedules and Cash Budget + 15 Cash Budget For the Month of March 16 17 18 Cash balance, March 1 19 Add cash receipts: 20 Collections from customers 21 Total cash available before current financing 22 Less disbursements: 23 Payments to suppliers 24 Selling and administrative expenses 25 Equipment purchases 26 Dividends paid 27 Total disbursements 28 Excess (deficiency) of cash available over disbursements 29 Financing: 30 Borrowings 31 Repayments 32 Interest 33 Total financing 34 Cash balance, March 31 35 36 37 38 Budget Data Schedules and Cash Budget