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Come up with a schedule of expected cash collections

Accounting

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1. Come up with a schedule of expected cash collections.
2. Complete a schedule of expected cash disbursements for purchase of materials.
3. Make a cash budget.

 

 

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S&P Enterprise needs a cash budget for March. The following information is available.

 

Data:

Actual January and February and expected March sales:

Cash Sales: Jan - $1600, Feb-$3750, Mar-$5100

Sales on Account: Jan-25,000, Feb- 30,000, Mar - 40,000

Total Sales: Jan-26,600, Feb - 33,750, Mar-45100

 

Accounts receivable Collections

Month of sale: Jan -15%

Month following sale: Jan-60%

Second month following sale: Jan- 22%

Uncollectible: Jan-3%

 

Accounts payable for inventory purchase, March 1 Balance: Jan- $10,500

Budgeted Inventory purchases in March: Jan-23,500

 

Inventory Payments:

• Month of purchase: Jan- 60%
• Month following purchase: Jan-40%

 

Total Budgeted selling & administrative expenses in March: Jan - 12,500

Budgeted selling & administrative depreciate in March: jan-3200

 

Other budgeted cash disbursements in March

• Equipment purchases: jan-14,000
• Dividend to be paid: Jan- 2,000

 

Minimum cash balance to be maintained: Jan- $10,000

March 1 Cash Balance: Jan- $11,500

March 1 outstanding borrowings: Jan- $0

March 1 Interest due: Jan- $0

 

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

 

When preparing budgets, the company maintains their data on a separate sheet from the actual budget and schedules

 

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 purchase 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.

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Schedules and Cash Budget Tab:

Expected Cash Collections:

March Cash Collections: ?

March Collections on Account:

January sales: ?

February sales: ?

March Sales: ?

Total Cash Collections: ?

 

Payments to Suppliers:

Accounts payable for inventory purchases, beginning balance:?

March Purchases: ?

Total Cash Payments: ?

 

S&P Enterprises Cash Budget:

Cash Balance, March 1: ?

Add Cash receipts:

• Collections from Customers: ?

Total Cash Available: ?

Less Disbursements:

• Payments to suppliers: ?
• Selling and administrative expenses: ?
• Equipment purchases: ?
• Equipment purchases: ?
• Dividends Paid: ?

Total Disbursements: ?

Preliminary Cash Balance: ?

 

Financing:

• Additional Loan?
• Loan Repayments: ?
• Intrest: ?

Total Financing: ?

Cash Balance, March 31: ?