1. Prepare a sales budget, including a schedule of expected cash collections. 2. Prepare a direct materials budget, including a schedule of expected cash disbursements for purchases of materials. 3. Prepare a cash budget. Cash Budget with Supporting Cash Collections and Disbursements Schedules - Excel ? Sign In FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Calibri 11 A A % M Paste BIU A Alignment Number Conditional Format as Cell Cells Formatting Table Styles Styles Editing Clipboard A1 Font X fx A S&P Enterprises needs a cash budget for March. The following information is B C 1 S&P Enterprises needs a cash budget for March. The following information is available. 2 D E February March January 3 Data 4 Actual January and February and expected March sales: $ 5 Cash sales 1,600 $ 3,750 $ 5,100 25,000 30,000 40,000 6 Sales on account 7 Total Sales 8 9 Accounts Receivable Collections: Month of sale 10 11 Month following sale $ 26,600 $ 33,750 $ 45,100 15% 60% < < 4 A1 , fx S&P Enterprises needs a cash budget for March. The following information is 10 9 Accounts Receivable Collections: Month of sale A B 11 Month following sale 12 Second month following sale 15% 60% 22% 3% 13 Uncollectible 14 15 Accounts payable for inventory purchases, March 1 balance $10,500 16 Budgeted inventory purchases in March 17 Inventory payments: $23,500 60% 18 Month of purchase 40% 19 Month following purchase 20 21 Total budgeted selling & administrative expenses in March $12,500 22 Budgeted selling & administrative depreciation in March $3,200 23 24 Other budgeted cash disbursements in March 25 Equipment purchases 26 Dividends to be paid 27 28 Minimum cash balance to be maintained 29 March 1 cash balance 30 March 1 outstanding borrowings 31 March 1 interest due 32 Budget Data Schedules and Cash Budget www C $14,000 $2,000 $10,000 $11,500 $0 $0 D E A1 f S&P Enterprises needs a cash budget for March. The following information is A B C D E $3,200 22 Budgeted selling & administrative depreciation in March 23 24 Other budgeted cash disbursements in March 25 Equipment purchases 26 Dividends to be paid 27 28 Minimum cash balance to be maintained 29 March 1 cash balance 30 March 1 outstanding borrowings 31 March 1 interest due 32 $14,000 $2,000 $10,000 $11,500 $0 $0 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 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 41 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. 42 444 43 44 45 Budget Data Schedules and Cash Budget