Help Save & Exit Subn needs a cash for March. The ion is available 3 Data Januar

Question

Help Save & Exit Subn needs a cash for March. The ion is available 3 Data January Febrwary March Actual January and February and expected March sales: s Cash sales 6 Sales on account 7 Total Sales $ 1,600 3,750 $ 5,100 25000000040,000 S 2600 S 33,750 45.100 9 Accounts Receivable Collections Month of sale Month following sale 15% 22% 3% 12 Sccond month following sale 3 Uncollectible 14 s Accounts payable for inventory purchases, March 1 balance 16 Badgeted inventory purchases in March 17 Inventory payments 8 Month of purchase 19 Month following purchase $10,500 $23,500 60% 21 Total budgeted selling &administrative; expenses in March 22 Budgeted selling& administrative depreciation in March $12.500 $3.200 Other badeeted cash dishunsements in March Budget Data Schedules and Cash Budget ?? 8 9

Explanation / Answer

Expected cash collections: March cash collections 5100 March collections on account: January sales (22% x $25000) 5500 February sales (60% x $30000) 18000 March sales (15% x $40000) 6000 Total cash collections 34600 Payments to suppliers: Accounts payable for inventory purchases, beginning balance 10500 March purchases (60% x $23500) 14100 Total cash payments 24600 S & P Enterprises Cash Budget For the Month of March Cash balance, March 1 11500 Add cash receipts: Collections from customers 34600 Total cash available before current financing 46100 Less disbursements: Payments to suppliers 24600 Selling and administrative expenses ($12500 - $3200) 9300 Equipment purchases 14000 Dividends paid 2000 Total disbursements 49900 Excess (deficiency) of cash available over disbursements -3800 Financing: Borrowings 13800 Repayments 0 Interest 0 Total financing 13800 Cash balance, March 31 10000

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